Correlation Between Walmart and TrueShares Structured
Can any of the company-specific risk be diversified away by investing in both Walmart and TrueShares Structured 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 TrueShares Structured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and TrueShares Structured Outcome, you can compare the effects of market volatilities on Walmart and TrueShares Structured 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 TrueShares Structured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and TrueShares Structured.
Diversification Opportunities for Walmart and TrueShares Structured
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Walmart and TrueShares is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and TrueShares Structured Outcome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TrueShares Structured 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 TrueShares Structured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TrueShares Structured has no effect on the direction of Walmart i.e., Walmart and TrueShares Structured go up and down completely randomly.
Pair Corralation between Walmart and TrueShares Structured
Considering the 90-day investment horizon Walmart is expected to generate 1.68 times more return on investment than TrueShares Structured. However, Walmart is 1.68 times more volatile than TrueShares Structured Outcome. It trades about 0.25 of its potential returns per unit of risk. TrueShares Structured Outcome is currently generating about 0.13 per unit of risk. If you would invest 6,563 in Walmart on September 1, 2024 and sell it today you would earn a total of 2,687 from holding Walmart or generate 40.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Walmart vs. TrueShares Structured Outcome
Performance |
| Timeline |
| Walmart |
| TrueShares Structured |
Walmart and TrueShares Structured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and TrueShares Structured
The main advantage of trading using opposite Walmart and TrueShares Structured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, TrueShares Structured 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 TrueShares Structured will offset losses from the drop in TrueShares Structured's long position.| Walmart vs. Ingles Markets Incorporated | Walmart vs. Grocery Outlet Holding | Walmart vs. Ocado Group plc | Walmart vs. Sprouts Farmers Market |
| TrueShares Structured vs. Innovator ETFs Trust | TrueShares Structured vs. First Trust Cboe | TrueShares Structured vs. Innovator SP 500 | TrueShares Structured vs. Innovator Equity Power |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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