Correlation Between Walmart and JEFFERIES
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By analyzing existing cross correlation between Walmart and JEFFERIES GROUP INC, you can compare the effects of market volatilities on Walmart and JEFFERIES 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 JEFFERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and JEFFERIES.
Diversification Opportunities for Walmart and JEFFERIES
Excellent diversification
The 3 months correlation between Walmart and JEFFERIES is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and JEFFERIES GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JEFFERIES GROUP 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 JEFFERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JEFFERIES GROUP INC has no effect on the direction of Walmart i.e., Walmart and JEFFERIES go up and down completely randomly.
Pair Corralation between Walmart and JEFFERIES
Considering the 90-day investment horizon Walmart is expected to generate 2.95 times more return on investment than JEFFERIES. However, Walmart is 2.95 times more volatile than JEFFERIES GROUP INC. It trades about 0.25 of its potential returns per unit of risk. JEFFERIES GROUP INC is currently generating about 0.01 per unit of risk. If you would invest 5,949 in Walmart on September 3, 2024 and sell it today you would earn a total of 3,301 from holding Walmart or generate 55.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.84% |
| Values | Daily Returns |
Walmart vs. JEFFERIES GROUP INC
Performance |
| Timeline |
| Walmart |
| JEFFERIES GROUP INC |
Walmart and JEFFERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and JEFFERIES
The main advantage of trading using opposite Walmart and JEFFERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, JEFFERIES 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 JEFFERIES will offset losses from the drop in JEFFERIES's long position.| Walmart vs. Partner Communications | Walmart vs. Merck Company | Walmart vs. Western Midstream Partners | Walmart vs. Edgewise Therapeutics |
| JEFFERIES vs. Proficient Auto Logistics, | JEFFERIES vs. Verra Mobility Corp | JEFFERIES vs. Pekin Life Insurance | JEFFERIES vs. The Hanover Insurance |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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