Correlation Between Walmart and International
Specify exactly 2 symbols:
By analyzing existing cross correlation between Walmart and International Game Technology, 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
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walmart and International is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game 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 Game 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 3.28 times more return on investment than International. However, Walmart is 3.28 times more volatile than International Game Technology. It trades about 0.26 of its potential returns per unit of risk. International Game Technology is currently generating about -0.07 per unit of risk. If you would invest 7,966 in Walmart on September 12, 2024 and sell it today you would earn a total of 1,530 from holding Walmart or generate 19.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 79.69% |
| Values | Daily Returns |
Walmart vs. International Game Technology
Performance |
| Timeline |
| Walmart |
| International Game |
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. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| International vs. Smith Douglas Homes | International vs. Mid Atlantic Home Health | International vs. Cebu Air ADR | International vs. Delta Air Lines |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |