Correlation Between Walmart and TELUS
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By analyzing existing cross correlation between Walmart and TELUS P 37, you can compare the effects of market volatilities on Walmart and TELUS 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 TELUS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and TELUS.
Diversification Opportunities for Walmart and TELUS
Significant diversification
The 3 months correlation between Walmart and TELUS is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and TELUS P 37 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELUS P 37 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 TELUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELUS P 37 has no effect on the direction of Walmart i.e., Walmart and TELUS go up and down completely randomly.
Pair Corralation between Walmart and TELUS
Considering the 90-day investment horizon Walmart is expected to generate 22.54 times less return on investment than TELUS. But when comparing it to its historical volatility, Walmart is 60.87 times less risky than TELUS. It trades about 0.16 of its potential returns per unit of risk. TELUS P 37 is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 9,434 in TELUS P 37 on September 12, 2024 and sell it today you would lose (73.00) from holding TELUS P 37 or give up 0.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 63.64% |
| Values | Daily Returns |
Walmart vs. TELUS P 37
Performance |
| Timeline |
| Walmart |
| TELUS P 37 |
Walmart and TELUS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and TELUS
The main advantage of trading using opposite Walmart and TELUS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, TELUS 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 TELUS will offset losses from the drop in TELUS'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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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