Correlation Between Walmart and SITE Centers
Can any of the company-specific risk be diversified away by investing in both Walmart and SITE Centers 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 SITE Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and SITE Centers Corp, you can compare the effects of market volatilities on Walmart and SITE Centers 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 SITE Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and SITE Centers.
Diversification Opportunities for Walmart and SITE Centers
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walmart and SITE is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and SITE Centers Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SITE Centers Corp 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 SITE Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SITE Centers Corp has no effect on the direction of Walmart i.e., Walmart and SITE Centers go up and down completely randomly.
Pair Corralation between Walmart and SITE Centers
Considering the 90-day investment horizon Walmart is expected to generate 15.4 times more return on investment than SITE Centers. However, Walmart is 15.4 times more volatile than SITE Centers Corp. It trades about 0.55 of its potential returns per unit of risk. SITE Centers Corp is currently generating about 0.07 per unit of risk. If you would invest 8,245 in Walmart on September 5, 2024 and sell it today you would earn a total of 1,106 from holding Walmart or generate 13.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 77.27% |
| Values | Daily Returns |
Walmart vs. SITE Centers Corp
Performance |
| Timeline |
| Walmart |
| SITE Centers Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Walmart and SITE Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and SITE Centers
The main advantage of trading using opposite Walmart and SITE Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, SITE Centers 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 SITE Centers will offset losses from the drop in SITE Centers' long position.| Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation | Walmart vs. Via Renewables |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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