This module allows you to analyze existing cross correlation between Walmart and NIKKEI 225. You can compare the effects of market volatilities on Walmart and NIKKEI 225 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 NIKKEI 225. See also your portfolio center. Please also check ongoing floating volatility patterns of Walmart and NIKKEI 225.
|Horizon||30 Days Login to change|
Predicted Return Density
Walmart Inc vs. NIKKEI 225
Considering 30-days investment horizon, Walmart is expected to generate 0.9 times more return on investment than NIKKEI 225. However, Walmart is 1.11 times less risky than NIKKEI 225. It trades about 0.01 of its potential returns per unit of risk. NIKKEI 225 is currently generating about -0.03 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 NIKKEI 225
|Time Period||2 Months [change]|
Diversification Opportunities for Walmart and NIKKEI 225
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Walmart Inc and NIKKEI 225 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIKKEI 225 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 NIKKEI 225. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIKKEI 225 has no effect on the direction of Walmart i.e. Walmart and NIKKEI 225 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.