Correlation Between Walmart and 06051GGA1
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By analyzing existing cross correlation between Walmart and BANK AMER P, you can compare the effects of market volatilities on Walmart and 06051GGA1 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 06051GGA1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and 06051GGA1.
Diversification Opportunities for Walmart and 06051GGA1
Excellent diversification
The 3 months correlation between Walmart and 06051GGA1 is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and BANK AMER P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK AMER P 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 06051GGA1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK AMER P has no effect on the direction of Walmart i.e., Walmart and 06051GGA1 go up and down completely randomly.
Pair Corralation between Walmart and 06051GGA1
Considering the 90-day investment horizon Walmart is expected to generate 0.61 times more return on investment than 06051GGA1. However, Walmart is 1.63 times less risky than 06051GGA1. It trades about 0.34 of its potential returns per unit of risk. BANK AMER P is currently generating about -0.22 per unit of risk. If you would invest 8,275 in Walmart on August 28, 2024 and sell it today you would earn a total of 675.00 from holding Walmart or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walmart vs. BANK AMER P
Performance |
| Timeline |
| Walmart |
| BANK AMER P |
Walmart and 06051GGA1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and 06051GGA1
The main advantage of trading using opposite Walmart and 06051GGA1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, 06051GGA1 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 06051GGA1 will offset losses from the drop in 06051GGA1's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| 06051GGA1 vs. Papaya Growth Opportunity | 06051GGA1 vs. Valens | 06051GGA1 vs. CECO Environmental Corp | 06051GGA1 vs. Highway Holdings Limited |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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