Correlation Between Walmart and SUMITOMO
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By analyzing existing cross correlation between Walmart and SUMITOMO MITSUI FINL, you can compare the effects of market volatilities on Walmart and SUMITOMO 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 SUMITOMO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and SUMITOMO.
Diversification Opportunities for Walmart and SUMITOMO
Excellent diversification
The 3 months correlation between Walmart and SUMITOMO is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and SUMITOMO MITSUI FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUMITOMO MITSUI FINL 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 SUMITOMO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUMITOMO MITSUI FINL has no effect on the direction of Walmart i.e., Walmart and SUMITOMO go up and down completely randomly.
Pair Corralation between Walmart and SUMITOMO
Considering the 90-day investment horizon Walmart is expected to generate 1.61 times more return on investment than SUMITOMO. However, Walmart is 1.61 times more volatile than SUMITOMO MITSUI FINL. It trades about 0.15 of its potential returns per unit of risk. SUMITOMO MITSUI FINL is currently generating about -0.01 per unit of risk. If you would invest 5,014 in Walmart on August 31, 2024 and sell it today you would earn a total of 4,174 from holding Walmart or generate 83.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 84.26% |
| Values | Daily Returns |
Walmart vs. SUMITOMO MITSUI FINL
Performance |
| Timeline |
| Walmart |
| SUMITOMO MITSUI FINL |
Walmart and SUMITOMO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and SUMITOMO
The main advantage of trading using opposite Walmart and SUMITOMO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, SUMITOMO 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 SUMITOMO will offset losses from the drop in SUMITOMO's long position.| Walmart vs. Dollar General | Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation |
| SUMITOMO vs. AEP TEX INC | SUMITOMO vs. US BANK NATIONAL | SUMITOMO vs. American Express | SUMITOMO vs. Chevron Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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