Correlation Between G Willi and Walmart
Can any of the company-specific risk be diversified away by investing in both G Willi 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 G Willi and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Willi Food International and Walmart, you can compare the effects of market volatilities on G Willi 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 G Willi with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Willi and Walmart.
Diversification Opportunities for G Willi and Walmart
Excellent diversification
The 3 months correlation between WILC and Walmart is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding G Willi Food International and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and G Willi 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 G Willi Food International 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 G Willi i.e., G Willi and Walmart go up and down completely randomly.
Pair Corralation between G Willi and Walmart
Given the investment horizon of 90 days G Willi Food International is expected to under-perform the Walmart. In addition to that, G Willi is 1.44 times more volatile than Walmart. It trades about -0.4 of its total potential returns per unit of risk. Walmart is currently generating about -0.06 per unit of volatility. If you would invest 6,051 in Walmart on January 26, 2024 and sell it today you would lose (64.00) from holding Walmart or give up 1.06% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
G Willi Food International vs. Walmart
Performance |
Timeline |
G Willi Food |
Walmart |
G Willi and Walmart Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with G Willi and Walmart
The main advantage of trading using opposite G Willi and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Willi 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.G Willi vs. Ingles Markets Incorporated | G Willi vs. Natural Grocers by | G Willi vs. Tesco PLC | G Willi vs. Casino Guichard Perrachon |
Walmart vs. Ingles Markets Incorporated | Walmart vs. Natural Grocers by | Walmart vs. Tesco PLC | Walmart vs. Casino Guichard Perrachon |
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.
Other Complementary Tools
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |