Correlation Between Walmart and LLOYDS
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By analyzing existing cross correlation between Walmart and LLOYDS BANKING GROUP, you can compare the effects of market volatilities on Walmart and LLOYDS 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 LLOYDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and LLOYDS.
Diversification Opportunities for Walmart and LLOYDS
Significant diversification
The 3 months correlation between Walmart and LLOYDS is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and LLOYDS BANKING GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LLOYDS BANKING GROUP 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 LLOYDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LLOYDS BANKING GROUP has no effect on the direction of Walmart i.e., Walmart and LLOYDS go up and down completely randomly.
Pair Corralation between Walmart and LLOYDS
Considering the 90-day investment horizon Walmart is expected to generate 5.02 times more return on investment than LLOYDS. However, Walmart is 5.02 times more volatile than LLOYDS BANKING GROUP. It trades about 0.59 of its potential returns per unit of risk. LLOYDS BANKING GROUP is currently generating about 0.15 per unit of risk. If you would invest 9,180 in Walmart on November 9, 2024 and sell it today you would earn a total of 1,105 from holding Walmart or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Walmart vs. LLOYDS BANKING GROUP
Performance |
| Timeline |
| Walmart |
| LLOYDS BANKING GROUP |
Walmart and LLOYDS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and LLOYDS
The main advantage of trading using opposite Walmart and LLOYDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, LLOYDS 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 LLOYDS will offset losses from the drop in LLOYDS's long position.| Walmart vs. Great Western Minerals | Walmart vs. Enterprise Bancorp | Walmart vs. T Rowe Price | Walmart vs. Aviat Networks |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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