Correlation Between Walmart and PRIME
Specify exactly 2 symbols:
By analyzing existing cross correlation between Walmart and PRIME SEC SVCS, you can compare the effects of market volatilities on Walmart and PRIME 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 PRIME. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and PRIME.
Diversification Opportunities for Walmart and PRIME
Pay attention - limited upside
The 3 months correlation between Walmart and PRIME is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and PRIME SEC SVCS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PRIME SEC SVCS 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 PRIME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PRIME SEC SVCS has no effect on the direction of Walmart i.e., Walmart and PRIME go up and down completely randomly.
Pair Corralation between Walmart and PRIME
Considering the 90-day investment horizon Walmart is expected to generate 1.48 times more return on investment than PRIME. However, Walmart is 1.48 times more volatile than PRIME SEC SVCS. It trades about 0.54 of its potential returns per unit of risk. PRIME SEC SVCS is currently generating about -0.22 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 | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Walmart vs. PRIME SEC SVCS
Performance |
| Timeline |
| Walmart |
| PRIME SEC SVCS |
Walmart and PRIME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and PRIME
The main advantage of trading using opposite Walmart and PRIME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, PRIME 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 PRIME will offset losses from the drop in PRIME'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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |