Correlation Between Walmart and Ivy International

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

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

Diversification Opportunities for Walmart and Ivy International

0.17

Correlation Coefficient

Walmart  Ivy International

Average diversification

The 3 months correlation between Walmart and Ivy is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Ivy International E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy International 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 Ivy International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy International has no effect on the direction of Walmart i.e., Walmart and Ivy International go up and down completely randomly.

Pair Corralation between Walmart and Ivy International

Considering the 90-day investment horizon Walmart is expected to under-perform the Ivy International. In addition to that, Walmart is 1.83 times more volatile than Ivy International E. It trades about -0.05 of its total potential returns per unit of risk. Ivy International E is currently generating about 0.2 per unit of volatility. If you would invest  1,777  in Ivy International E on December 20, 2024 and sell it today you would earn a total of  209.00  from holding Ivy International E or generate 11.76% return on investment over 90 days.

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

Walmart  vs.  Ivy International E

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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

Ivy International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ivy International E are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Ivy International may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Walmart and Ivy International

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

The idea behind Walmart and Ivy International E 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.