Correlation Between Walmart and WELLTOWER
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By analyzing existing cross correlation between Walmart and WELLTOWER INC, you can compare the effects of market volatilities on Walmart and WELLTOWER 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 WELLTOWER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and WELLTOWER.
Diversification Opportunities for Walmart and WELLTOWER
Excellent diversification
The 3 months correlation between Walmart and WELLTOWER is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and WELLTOWER INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WELLTOWER INC 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 WELLTOWER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WELLTOWER INC has no effect on the direction of Walmart i.e., Walmart and WELLTOWER go up and down completely randomly.
Pair Corralation between Walmart and WELLTOWER
Considering the 90-day investment horizon Walmart is expected to generate 1.83 times more return on investment than WELLTOWER. However, Walmart is 1.83 times more volatile than WELLTOWER INC. It trades about 0.12 of its potential returns per unit of risk. WELLTOWER INC is currently generating about 0.01 per unit of risk. If you would invest 4,830 in Walmart on August 28, 2024 and sell it today you would earn a total of 4,120 from holding Walmart or generate 85.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.98% |
| Values | Daily Returns |
Walmart vs. WELLTOWER INC
Performance |
| Timeline |
| Walmart |
| WELLTOWER INC |
Walmart and WELLTOWER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and WELLTOWER
The main advantage of trading using opposite Walmart and WELLTOWER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, WELLTOWER 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 WELLTOWER will offset losses from the drop in WELLTOWER's long position.| Walmart vs. Innovative Food Hldg | Walmart vs. Calavo Growers | Walmart vs. The Chefs Warehouse | Walmart vs. AMCON Distributing |
| WELLTOWER vs. Monster Beverage Corp | WELLTOWER vs. Kaiser Aluminum | WELLTOWER vs. Primo Brands | WELLTOWER vs. SNDL Inc |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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