Correlation Between Walmart and NOMURA
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By analyzing existing cross correlation between Walmart and NOMURA HOLDINGS INC, you can compare the effects of market volatilities on Walmart and NOMURA 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 NOMURA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and NOMURA.
Diversification Opportunities for Walmart and NOMURA
Very good diversification
The 3 months correlation between Walmart and NOMURA is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and NOMURA HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NOMURA HOLDINGS 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 NOMURA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NOMURA HOLDINGS INC has no effect on the direction of Walmart i.e., Walmart and NOMURA go up and down completely randomly.
Pair Corralation between Walmart and NOMURA
Considering the 90-day investment horizon Walmart is expected to generate 16.2 times less return on investment than NOMURA. But when comparing it to its historical volatility, Walmart is 49.25 times less risky than NOMURA. It trades about 0.14 of its potential returns per unit of risk. NOMURA HOLDINGS INC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8,791 in NOMURA HOLDINGS INC on August 31, 2024 and sell it today you would earn a total of 46.00 from holding NOMURA HOLDINGS INC or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.08% |
| Values | Daily Returns |
Walmart vs. NOMURA HOLDINGS INC
Performance |
| Timeline |
| Walmart |
| NOMURA HOLDINGS INC |
Walmart and NOMURA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and NOMURA
The main advantage of trading using opposite Walmart and NOMURA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, NOMURA 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 NOMURA will offset losses from the drop in NOMURA's long position.| Walmart vs. Dollar General | Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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