Correlation Between Walmart and GENERAL
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By analyzing existing cross correlation between Walmart and GENERAL MTRS 595, you can compare the effects of market volatilities on Walmart and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and GENERAL.
Diversification Opportunities for Walmart and GENERAL
Very good diversification
The 3 months correlation between Walmart and GENERAL is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and GENERAL MTRS 595 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL MTRS 595 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL MTRS 595 has no effect on the direction of Walmart i.e., Walmart and GENERAL go up and down completely randomly.
Pair Corralation between Walmart and GENERAL
Considering the 90-day investment horizon Walmart is expected to generate 0.98 times more return on investment than GENERAL. However, Walmart is 1.02 times less risky than GENERAL. It trades about -0.02 of its potential returns per unit of risk. GENERAL MTRS 595 is currently generating about -0.22 per unit of risk. If you would invest 9,740 in Walmart on November 28, 2024 and sell it today you would lose (120.00) from holding Walmart or give up 1.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walmart vs. GENERAL MTRS 595
Performance |
| Timeline |
| Walmart |
| GENERAL MTRS 595 |
Walmart and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and GENERAL
The main advantage of trading using opposite Walmart and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation | Walmart vs. Via Renewables |
| GENERAL vs. Ryanair Holdings PLC | GENERAL vs. Ihuman Inc | GENERAL vs. Sunlands Technology Group | GENERAL vs. Olympic Steel |
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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