Correlation Between Walmart and TRUIST
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By analyzing existing cross correlation between Walmart and TRUIST BANK, you can compare the effects of market volatilities on Walmart and TRUIST 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 TRUIST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and TRUIST.
Diversification Opportunities for Walmart and TRUIST
Excellent diversification
The 3 months correlation between Walmart and TRUIST is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and TRUIST BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRUIST BANK 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 TRUIST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRUIST BANK has no effect on the direction of Walmart i.e., Walmart and TRUIST go up and down completely randomly.
Pair Corralation between Walmart and TRUIST
Considering the 90-day investment horizon Walmart is expected to generate 0.82 times more return on investment than TRUIST. However, Walmart is 1.22 times less risky than TRUIST. It trades about 0.27 of its potential returns per unit of risk. TRUIST BANK is currently generating about -0.16 per unit of risk. If you would invest 7,608 in Walmart on August 28, 2024 and sell it today you would earn a total of 1,523 from holding Walmart or generate 20.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 84.38% |
| Values | Daily Returns |
Walmart vs. TRUIST BANK
Performance |
| Timeline |
| Walmart |
| TRUIST BANK |
Walmart and TRUIST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and TRUIST
The main advantage of trading using opposite Walmart and TRUIST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, TRUIST 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 TRUIST will offset losses from the drop in TRUIST'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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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