Correlation Between Walmart and EQUINIX
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By analyzing existing cross correlation between Walmart and EQUINIX INC, you can compare the effects of market volatilities on Walmart and EQUINIX 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 EQUINIX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and EQUINIX.
Diversification Opportunities for Walmart and EQUINIX
Excellent diversification
The 3 months correlation between Walmart and EQUINIX is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and EQUINIX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQUINIX INC 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 EQUINIX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQUINIX INC has no effect on the direction of Walmart i.e., Walmart and EQUINIX go up and down completely randomly.
Pair Corralation between Walmart and EQUINIX
Considering the 90-day investment horizon Walmart is expected to generate 1.99 times more return on investment than EQUINIX. However, Walmart is 1.99 times more volatile than EQUINIX INC. It trades about 0.16 of its potential returns per unit of risk. EQUINIX INC is currently generating about 0.0 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 | Weak |
| Accuracy | 98.86% |
| Values | Daily Returns |
Walmart vs. EQUINIX INC
Performance |
| Timeline |
| Walmart |
| EQUINIX INC |
Walmart and EQUINIX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and EQUINIX
The main advantage of trading using opposite Walmart and EQUINIX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, EQUINIX 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 EQUINIX will offset losses from the drop in EQUINIX's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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