Correlation Between Walmart and ANTHEM
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By analyzing existing cross correlation between Walmart and ANTHEM INC 4101, you can compare the effects of market volatilities on Walmart and ANTHEM 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 ANTHEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and ANTHEM.
Diversification Opportunities for Walmart and ANTHEM
Excellent diversification
The 3 months correlation between Walmart and ANTHEM is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and ANTHEM INC 4101 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTHEM INC 4101 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 ANTHEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTHEM INC 4101 has no effect on the direction of Walmart i.e., Walmart and ANTHEM go up and down completely randomly.
Pair Corralation between Walmart and ANTHEM
Considering the 90-day investment horizon Walmart is expected to generate 1.56 times more return on investment than ANTHEM. However, Walmart is 1.56 times more volatile than ANTHEM INC 4101. It trades about 0.12 of its potential returns per unit of risk. ANTHEM INC 4101 is currently generating about 0.0 per unit of risk. If you would invest 4,830 in Walmart on August 28, 2024 and sell it today you would earn a total of 4,120 from holding Walmart or generate 85.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Walmart vs. ANTHEM INC 4101
Performance |
| Timeline |
| Walmart |
| ANTHEM INC 4101 |
Walmart and ANTHEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and ANTHEM
The main advantage of trading using opposite Walmart and ANTHEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, ANTHEM 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 ANTHEM will offset losses from the drop in ANTHEM's long position.| Walmart vs. Innovative Food Hldg | Walmart vs. Calavo Growers | Walmart vs. The Chefs Warehouse | Walmart vs. AMCON Distributing |
| ANTHEM vs. AEP TEX INC | ANTHEM vs. US BANK NATIONAL | ANTHEM vs. Eat Beyond Global | ANTHEM vs. Charles Schwab Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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