Correlation Between Walmart and ATAK Old

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

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

Diversification Opportunities for Walmart and ATAK Old

0.0

Correlation Coefficient

Walmart  ATAK Old

Pay attention - limited upside

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

Pair Corralation between Walmart and ATAK Old

If you would invest  8,257  in Walmart on October 26, 2024 and sell it today you would earn a total of  1,222  from holding Walmart or generate 14.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

Walmart  vs.  ATAK Old

Walmart

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Walmart are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain primary indicators, Walmart unveiled solid returns over the last few months and may actually be approaching a breakup point.

ATAK Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATAK Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, ATAK Old is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Walmart and ATAK Old

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

The idea behind Walmart and ATAK 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.