Correlation Between Walmart and Sculptor Capital
Can any of the company-specific risk be diversified away by investing in both Walmart and Sculptor Capital at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Walmart and Sculptor Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Sculptor Capital Management, you can compare the effects of market volatilities on Walmart and Sculptor Capital and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Walmart with a short position of Sculptor Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Sculptor Capital.
Diversification Opportunities for Walmart and Sculptor Capital
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walmart and Sculptor is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Sculptor Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sculptor Capital Man and Walmart is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Walmart are associated (or correlated) with Sculptor Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sculptor Capital Man has no effect on the direction of Walmart i.e., Walmart and Sculptor Capital go up and down completely randomly.
Pair Corralation between Walmart and Sculptor Capital
If you would invest 8,421 in Walmart on September 12, 2024 and sell it today you would earn a total of 1,034 from holding Walmart or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Walmart vs. Sculptor Capital Management
Performance |
| Timeline |
| Walmart |
| Sculptor Capital Man |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walmart and Sculptor Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Sculptor Capital
The main advantage of trading using opposite Walmart and Sculptor Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Sculptor Capital can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sculptor Capital will offset losses from the drop in Sculptor Capital's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| Sculptor Capital vs. Federated Premier Municipal | Sculptor Capital vs. Blackrock Muniyield | Sculptor Capital vs. Diamond Hill Investment | Sculptor Capital vs. NXG NextGen Infrastructure |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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