Correlation Between Walmart and 10X Capital
Can any of the company-specific risk be diversified away by investing in both Walmart and 10X Capital at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Walmart and 10X Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and 10X Capital Venture, you can compare the effects of market volatilities on Walmart and 10X Capital 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 10X Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and 10X Capital.
Diversification Opportunities for Walmart and 10X Capital
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walmart and 10X is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and 10X Capital Venture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 10X Capital Venture 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 10X Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 10X Capital Venture has no effect on the direction of Walmart i.e., Walmart and 10X Capital go up and down completely randomly.
Pair Corralation between Walmart and 10X Capital
Considering the 90-day investment horizon Walmart is expected to generate 4.89 times less return on investment than 10X Capital. But when comparing it to its historical volatility, Walmart is 8.42 times less risky than 10X Capital. It trades about 0.12 of its potential returns per unit of risk. 10X Capital Venture is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5.28 in 10X Capital Venture on August 25, 2024 and sell it today you would earn a total of 2.21 from holding 10X Capital Venture or generate 41.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 29.58% |
| Values | Daily Returns |
Walmart vs. 10X Capital Venture
Performance |
| Timeline |
| Walmart |
| 10X Capital Venture |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walmart and 10X Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and 10X Capital
The main advantage of trading using opposite Walmart and 10X Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, 10X Capital 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 10X Capital will offset losses from the drop in 10X Capital's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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