Correlation Between Walmart and EDVLN
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By analyzing existing cross correlation between Walmart and EDVLN 5 14 OCT 26, you can compare the effects of market volatilities on Walmart and EDVLN 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 EDVLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and EDVLN.
Diversification Opportunities for Walmart and EDVLN
Very poor diversification
The 3 months correlation between Walmart and EDVLN is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and EDVLN 5 14 OCT 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDVLN 5 14 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 EDVLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDVLN 5 14 has no effect on the direction of Walmart i.e., Walmart and EDVLN go up and down completely randomly.
Pair Corralation between Walmart and EDVLN
Considering the 90-day investment horizon Walmart is expected to generate 1.62 times more return on investment than EDVLN. However, Walmart is 1.62 times more volatile than EDVLN 5 14 OCT 26. It trades about 0.34 of its potential returns per unit of risk. EDVLN 5 14 OCT 26 is currently generating about 0.0 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 Together |
| Strength | Strong |
| Accuracy | 40.91% |
| Values | Daily Returns |
Walmart vs. EDVLN 5 14 OCT 26
Performance |
| Timeline |
| Walmart |
| EDVLN 5 14 |
Walmart and EDVLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and EDVLN
The main advantage of trading using opposite Walmart and EDVLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, EDVLN 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 EDVLN will offset losses from the drop in EDVLN'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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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