Correlation Between Walmart and SIMON
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By analyzing existing cross correlation between Walmart and SIMON PPTY GROUP, you can compare the effects of market volatilities on Walmart and SIMON 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 SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and SIMON.
Diversification Opportunities for Walmart and SIMON
Very good diversification
The 3 months correlation between Walmart and SIMON is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and SIMON PPTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PPTY 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 SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PPTY GROUP has no effect on the direction of Walmart i.e., Walmart and SIMON go up and down completely randomly.
Pair Corralation between Walmart and SIMON
Considering the 90-day investment horizon Walmart is expected to under-perform the SIMON. In addition to that, Walmart is 3.17 times more volatile than SIMON PPTY GROUP. It trades about 0.0 of its total potential returns per unit of risk. SIMON PPTY GROUP is currently generating about 0.14 per unit of volatility. If you would invest 8,226 in SIMON PPTY GROUP on November 27, 2024 and sell it today you would earn a total of 113.00 from holding SIMON PPTY GROUP or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Walmart vs. SIMON PPTY GROUP
Performance |
| Timeline |
| Walmart |
| SIMON PPTY GROUP |
Walmart and SIMON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and SIMON
The main advantage of trading using opposite Walmart and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, SIMON 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 SIMON will offset losses from the drop in SIMON's long position.| Walmart vs. Target | Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation |
| SIMON vs. FactSet Research Systems | SIMON vs. Church Dwight | SIMON vs. Pinterest | SIMON vs. World Houseware Limited |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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