Correlation Between Walmart and Under
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By analyzing existing cross correlation between Walmart and Under Armour 325, you can compare the effects of market volatilities on Walmart and Under 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 Under. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Under.
Diversification Opportunities for Walmart and Under
Excellent diversification
The 3 months correlation between Walmart and Under is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Under Armour 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Under Armour 325 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 Under. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Under Armour 325 has no effect on the direction of Walmart i.e., Walmart and Under go up and down completely randomly.
Pair Corralation between Walmart and Under
Considering the 90-day investment horizon Walmart is expected to generate 1.67 times more return on investment than Under. However, Walmart is 1.67 times more volatile than Under Armour 325. It trades about 0.53 of its potential returns per unit of risk. Under Armour 325 is currently generating about -0.15 per unit of risk. If you would invest 8,219 in Walmart on September 2, 2024 and sell it today you would earn a total of 1,031 from holding Walmart or generate 12.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Walmart vs. Under Armour 325
Performance |
| Timeline |
| Walmart |
| Under Armour 325 |
Walmart and Under Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Under
The main advantage of trading using opposite Walmart and Under positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Under 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 Under will offset losses from the drop in Under's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| Under vs. Tesla Inc | Under vs. WiMi Hologram Cloud | Under vs. Nomura Holdings ADR | Under vs. Stepstone Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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