Correlation Between Ameritrust Corp and Walmart

Can any of the company-specific risk be diversified away by investing in both Ameritrust Corp and Walmart 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 Ameritrust Corp and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ameritrust Corp and Walmart, you can compare the effects of market volatilities on Ameritrust Corp and Walmart 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 Ameritrust Corp with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameritrust Corp and Walmart.

Diversification Opportunities for Ameritrust Corp and Walmart

0.0

Correlation Coefficient

Ameritrust Corp  Walmart

Pay attention - limited upside

The 3 months correlation between Ameritrust and Walmart is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ameritrust Corp and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and Ameritrust Corp 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 Ameritrust Corp are associated (or correlated) with Walmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walmart has no effect on the direction of Ameritrust Corp i.e., Ameritrust Corp and Walmart go up and down completely randomly.

Pair Corralation between Ameritrust Corp and Walmart

If you would invest  0.02  in Ameritrust Corp on January 20, 2024 and sell it today you would earn a total of  0.00  from holding Ameritrust Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Ameritrust Corp  vs.  Walmart

Ameritrust Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ameritrust Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Ameritrust Corp is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Walmart

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Walmart are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent primary indicators, Walmart may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with Ameritrust Corp and Walmart

The main advantage of trading using opposite Ameritrust Corp and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameritrust Corp position performs unexpectedly, Walmart 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 Walmart will offset losses from the drop in Walmart's long position.

The idea behind Ameritrust Corp and Walmart pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.