Correlation Between Walmart and COMERICA

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Walmart and COMERICA 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 COMERICA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and COMERICA INC 4, you can compare the effects of market volatilities on Walmart and COMERICA 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 COMERICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and COMERICA.

Diversification Opportunities for Walmart and COMERICA

-0.59
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Walmart and COMERICA is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and COMERICA INC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMERICA INC 4 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 COMERICA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMERICA INC 4 has no effect on the direction of Walmart i.e., Walmart and COMERICA go up and down completely randomly.

Pair Corralation between Walmart and COMERICA

Considering the 90-day investment horizon Walmart is expected to generate 1.11 times more return on investment than COMERICA. However, Walmart is 1.11 times more volatile than COMERICA INC 4. It trades about 0.49 of its potential returns per unit of risk. COMERICA INC 4 is currently generating about 0.16 per unit of risk. If you would invest  8,170  in Walmart on August 30, 2024 and sell it today you would earn a total of  1,018  from holding Walmart or generate 12.46% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy86.96%
ValuesDaily Returns

Walmart  vs.  COMERICA INC 4

 Performance 
       Timeline  
Walmart 

Risk-Adjusted Performance

20 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Walmart are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting primary indicators, Walmart unveiled solid returns over the last few months and may actually be approaching a breakup point.
COMERICA INC 4 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in COMERICA INC 4 are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, COMERICA is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Walmart and COMERICA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Walmart and COMERICA

The main advantage of trading using opposite Walmart and COMERICA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, COMERICA 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 COMERICA will offset losses from the drop in COMERICA's long position.
Walmart vs. Weis Markets
Walmart vs. Ingles Markets Incorporated
Walmart vs. Sendas Distribuidora SA
Walmart vs. Village Super Market
The idea behind Walmart and COMERICA INC 4 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
COMERICA vs. Lindblad Expeditions Holdings
COMERICA vs. Videolocity International
COMERICA vs. Mills Music Trust
COMERICA vs. Warner Music Group
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

Other Complementary Tools

Transaction History
View history of all your transactions and understand their impact on performance
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY