Correlation Between Walmart and 707569AS8
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By analyzing existing cross correlation between Walmart and Penn National Gaming, you can compare the effects of market volatilities on Walmart and 707569AS8 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 707569AS8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and 707569AS8.
Diversification Opportunities for Walmart and 707569AS8
Very good diversification
The 3 months correlation between Walmart and 707569AS8 is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Penn National Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penn National Gaming 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 707569AS8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penn National Gaming has no effect on the direction of Walmart i.e., Walmart and 707569AS8 go up and down completely randomly.
Pair Corralation between Walmart and 707569AS8
Considering the 90-day investment horizon Walmart is expected to generate 51.69 times less return on investment than 707569AS8. But when comparing it to its historical volatility, Walmart is 91.92 times less risky than 707569AS8. It trades about 0.16 of its potential returns per unit of risk. Penn National Gaming is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9,463 in Penn National Gaming on September 12, 2024 and sell it today you would lose (238.00) from holding Penn National Gaming or give up 2.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 83.24% |
| Values | Daily Returns |
Walmart vs. Penn National Gaming
Performance |
| Timeline |
| Walmart |
| Penn National Gaming |
Walmart and 707569AS8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and 707569AS8
The main advantage of trading using opposite Walmart and 707569AS8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, 707569AS8 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 707569AS8 will offset losses from the drop in 707569AS8's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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