Correlation Between Walmart and KEMPER
Specify exactly 2 symbols:
By analyzing existing cross correlation between Walmart and KEMPER P DEL, you can compare the effects of market volatilities on Walmart and KEMPER 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 KEMPER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and KEMPER.
Diversification Opportunities for Walmart and KEMPER
Excellent diversification
The 3 months correlation between Walmart and KEMPER is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and KEMPER P DEL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEMPER P DEL 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 KEMPER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEMPER P DEL has no effect on the direction of Walmart i.e., Walmart and KEMPER go up and down completely randomly.
Pair Corralation between Walmart and KEMPER
Considering the 90-day investment horizon Walmart is expected to generate 1.29 times more return on investment than KEMPER. However, Walmart is 1.29 times more volatile than KEMPER P DEL. It trades about 0.54 of its potential returns per unit of risk. KEMPER P DEL is currently generating about -0.24 per unit of risk. If you would invest 8,195 in Walmart on September 1, 2024 and sell it today you would earn a total of 1,055 from holding Walmart or generate 12.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Walmart vs. KEMPER P DEL
Performance |
| Timeline |
| Walmart |
| KEMPER P DEL |
Walmart and KEMPER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and KEMPER
The main advantage of trading using opposite Walmart and KEMPER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, KEMPER 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 KEMPER will offset losses from the drop in KEMPER's long position.| Walmart vs. Ingles Markets Incorporated | Walmart vs. Grocery Outlet Holding | Walmart vs. Ocado Group plc | Walmart vs. Sprouts Farmers Market |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |