Correlation Analysis Between Walmart and All Ords

This module allows you to analyze existing cross correlation between Walmart and All Ords. You can compare the effects of market volatilities on Walmart and All Ords 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 All Ords. See also your portfolio center. Please also check ongoing floating volatility patterns of Walmart and All Ords.
Horizon     30 Days    Login   to change
Check Efficiency

Comparative Performance

 Predicted Return Density 

Walmart Inc  vs.  All Ords

 Performance (%) 

Pair Volatility

Considering 30-days investment horizon, Walmart is expected to generate 1.37 times more return on investment than All Ords. However, Walmart is 1.37 times more volatile than All Ords. It trades about 0.01 of its potential returns per unit of risk. All Ords is currently generating about -0.04 per unit of risk. If you would invest  11,072  in Walmart on July 25, 2019 and sell it today you would earn a total of  11.00  from holding Walmart or generate 0.1% return on investment over 30 days.

Pair Corralation between Walmart and All Ords

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Walmart and All Ords

Walmart Inc diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding Walmart Inc and All Ords in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on All Ords 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 All Ords. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Ords has no effect on the direction of Walmart i.e. Walmart and All Ords go up and down completely randomly.
See also your portfolio center. Please also try Price Ceiling Movement module to calculate and plot price ceiling movement for different equity instruments.