Correlation Between Walmart and Gaslog Partners

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

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

Diversification Opportunities for Walmart and Gaslog Partners

0.0

Correlation Coefficient

Walmart  Gaslog Partners

Pay attention - limited upside

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

Pair Corralation between Walmart and Gaslog Partners

If you would invest (100.00) in Gaslog Partners LP on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Gaslog Partners LP 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  vs.  Gaslog Partners LP

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 comparatively stable primary indicators, Walmart is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Gaslog Partners LP

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gaslog Partners LP has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Gaslog Partners is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Walmart and Gaslog Partners

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

The idea behind Walmart and Gaslog Partners LP 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.