Correlation Between Walmart and SUPERVALU INC
Can any of the company-specific risk be diversified away by investing in both Walmart and SUPERVALU INC 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 SUPERVALU INC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and SUPERVALU INC, you can compare the effects of market volatilities on Walmart and SUPERVALU INC 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 SUPERVALU INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and SUPERVALU INC.
Diversification Opportunities for Walmart and SUPERVALU INC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walmart and SUPERVALU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and SUPERVALU INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUPERVALU 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 SUPERVALU INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUPERVALU INC has no effect on the direction of Walmart i.e., Walmart and SUPERVALU INC go up and down completely randomly.
Pair Corralation between Walmart and SUPERVALU INC
If you would invest (100.00) in SUPERVALU INC on January 19, 2024 and sell it today you would earn a total of 100.00 from holding SUPERVALU INC or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Walmart vs. SUPERVALU INC
Performance |
| Timeline |
| Walmart |
| SUPERVALU INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walmart and SUPERVALU INC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and SUPERVALU INC
The main advantage of trading using opposite Walmart and SUPERVALU INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, SUPERVALU INC 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 SUPERVALU INC will offset losses from the drop in SUPERVALU INC's long position.| Walmart vs. Betterware De Mexico | Walmart vs. Amexdrug | Walmart vs. Provident Bancorp | Walmart vs. Mersana Therapeutics |
| SUPERVALU INC vs. Park National | SUPERVALU INC vs. AmTrust Financial Services | SUPERVALU INC vs. Pintec Technology Holdings | SUPERVALU INC vs. US Silica Holdings |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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