Correlation Between Walmart and SOUTHERN
Specify exactly 2 symbols:
By analyzing existing cross correlation between Walmart and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on Walmart and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and SOUTHERN.
Diversification Opportunities for Walmart and SOUTHERN
Excellent diversification
The 3 months correlation between Walmart and SOUTHERN is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of Walmart i.e., Walmart and SOUTHERN go up and down completely randomly.
Pair Corralation between Walmart and SOUTHERN
Considering the 90-day investment horizon Walmart is expected to generate 1.04 times more return on investment than SOUTHERN. However, Walmart is 1.04 times more volatile than SOUTHERN CALIF EDISON. It trades about 0.27 of its potential returns per unit of risk. SOUTHERN CALIF EDISON is currently generating about -0.12 per unit of risk. If you would invest 7,724 in Walmart on September 4, 2024 and sell it today you would earn a total of 1,540 from holding Walmart or generate 19.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 62.5% |
| Values | Daily Returns |
Walmart vs. SOUTHERN CALIF EDISON
Performance |
| Timeline |
| Walmart |
| SOUTHERN CALIF EDISON |
Walmart and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and SOUTHERN
The main advantage of trading using opposite Walmart and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation | Walmart vs. Via Renewables |
| SOUTHERN vs. AEP TEX INC | SOUTHERN vs. US BANK NATIONAL | SOUTHERN vs. MetLife | SOUTHERN vs. Jackson Financial |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |