Correlation Between Walmart and GENERAL
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By analyzing existing cross correlation between Walmart and GENERAL MTRS FINL, 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
Pay attention - limited upside
The 3 months correlation between Walmart and GENERAL is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and GENERAL MTRS FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL MTRS FINL 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 FINL 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 3.41 times more return on investment than GENERAL. However, Walmart is 3.41 times more volatile than GENERAL MTRS FINL. It trades about 0.13 of its potential returns per unit of risk. GENERAL MTRS FINL is currently generating about 0.0 per unit of risk. If you would invest 4,725 in Walmart on August 30, 2024 and sell it today you would earn a total of 4,463 from holding Walmart or generate 94.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Walmart vs. GENERAL MTRS FINL
Performance |
| Timeline |
| Walmart |
| GENERAL MTRS FINL |
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. Weis Markets | Walmart vs. Ingles Markets Incorporated | Walmart vs. Sendas Distribuidora SA | Walmart vs. Village Super Market |
| GENERAL vs. Yuexiu Transport Infrastructure | GENERAL vs. Playtika Holding Corp | GENERAL vs. United Guardian | GENERAL vs. Dave Busters Entertainment |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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