Correlation Between Walmart and INTERNATIONAL
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By analyzing existing cross correlation between Walmart and INTERNATIONAL PAPER 5, you can compare the effects of market volatilities on Walmart and INTERNATIONAL 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 INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and INTERNATIONAL.
Diversification Opportunities for Walmart and INTERNATIONAL
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walmart and INTERNATIONAL is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and INTERNATIONAL PAPER 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL PAPER 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 INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL PAPER has no effect on the direction of Walmart i.e., Walmart and INTERNATIONAL go up and down completely randomly.
Pair Corralation between Walmart and INTERNATIONAL
Considering the 90-day investment horizon Walmart is expected to generate 0.76 times more return on investment than INTERNATIONAL. However, Walmart is 1.31 times less risky than INTERNATIONAL. It trades about 0.14 of its potential returns per unit of risk. INTERNATIONAL PAPER 5 is currently generating about 0.02 per unit of risk. If you would invest 4,727 in Walmart on September 5, 2024 and sell it today you would earn a total of 4,624 from holding Walmart or generate 97.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 63.84% |
| Values | Daily Returns |
Walmart vs. INTERNATIONAL PAPER 5
Performance |
| Timeline |
| Walmart |
| INTERNATIONAL PAPER |
Walmart and INTERNATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and INTERNATIONAL
The main advantage of trading using opposite Walmart and INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, INTERNATIONAL 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 INTERNATIONAL will offset losses from the drop in INTERNATIONAL's long position.| Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation | Walmart vs. Via Renewables |
| INTERNATIONAL vs. The Travelers Companies | INTERNATIONAL vs. GE Aerospace | INTERNATIONAL vs. Walmart | INTERNATIONAL vs. Pfizer Inc |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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