Correlation Between WALMART and CEIX Old

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

By analyzing existing cross correlation between WALMART INC and CEIX Old, you can compare the effects of market volatilities on WALMART and CEIX Old 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 CEIX Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of WALMART and CEIX Old.

Diversification Opportunities for WALMART and CEIX Old

0.0

Correlation Coefficient

WALMART  CEIX Old

Pay attention - limited upside

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

Pair Corralation between WALMART and CEIX Old

If you would invest (100.00) in CEIX Old on December 29, 2024 and sell it today you would earn a total of  100.00  from holding CEIX Old 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 INC  vs.  CEIX Old

WALMART INC

Risk-Adjusted Performance

Very Weak

Over the last 90 days WALMART INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, WALMART is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

CEIX Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days CEIX Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, CEIX Old is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with WALMART and CEIX Old

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

The idea behind WALMART INC and CEIX Old 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.

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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.