Correlation Between Walmart and DEERE
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By analyzing existing cross correlation between Walmart and DEERE 655 percent, you can compare the effects of market volatilities on Walmart and DEERE 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 DEERE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and DEERE.
Diversification Opportunities for Walmart and DEERE
Very good diversification
The 3 months correlation between Walmart and DEERE is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and DEERE 655 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEERE 655 percent 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 DEERE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DEERE 655 percent has no effect on the direction of Walmart i.e., Walmart and DEERE go up and down completely randomly.
Pair Corralation between Walmart and DEERE
Considering the 90-day investment horizon Walmart is expected to generate 1.69 times more return on investment than DEERE. However, Walmart is 1.69 times more volatile than DEERE 655 percent. It trades about 0.16 of its potential returns per unit of risk. DEERE 655 percent is currently generating about 0.02 per unit of risk. If you would invest 5,161 in Walmart on September 12, 2024 and sell it today you would earn a total of 4,294 from holding Walmart or generate 83.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.35% |
| Values | Daily Returns |
Walmart vs. DEERE 655 percent
Performance |
| Timeline |
| Walmart |
| DEERE 655 percent |
Walmart and DEERE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and DEERE
The main advantage of trading using opposite Walmart and DEERE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, DEERE 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 DEERE will offset losses from the drop in DEERE's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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