Correlation Between Walmart and Aya Gold

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

By analyzing existing cross correlation between Walmart and Aya Gold Silver, you can compare the effects of market volatilities on Walmart and Aya Gold 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 Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Aya Gold.

Diversification Opportunities for Walmart and Aya Gold

0.08

Correlation Coefficient

Walmart  Aya Gold

Significant diversification

The 3 months correlation between Walmart and Aya is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Aya Gold Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aya Gold Silver 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 Aya Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aya Gold Silver has no effect on the direction of Walmart i.e., Walmart and Aya Gold go up and down completely randomly.

Pair Corralation between Walmart and Aya Gold

Assuming the 90 days trading horizon Walmart is expected to under-perform the Aya Gold. But the stock apears to be less risky and, when comparing its historical volatility, Walmart is 2.46 times less risky than Aya Gold. The stock trades about -0.07 of its potential returns per unit of risk. The Aya Gold Silver is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  729.00  in Aya Gold Silver on December 23, 2024 and sell it today you would earn a total of  120.00  from holding Aya Gold Silver or generate 16.46% return on investment over 90 days.

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

Walmart  vs.  Aya Gold Silver

Walmart

Risk-Adjusted Performance

Very Weak

Over the last 90 days Walmart has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Aya Gold Silver

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Aya Gold Silver are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Aya Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Walmart and Aya Gold

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

The idea behind Walmart and Aya Gold Silver 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.