Correlation Between Walmart and Jacob Asset

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

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

Diversification Opportunities for Walmart and Jacob Asset

0.0

Correlation Coefficient

Walmart  Jacob Asset

Pay attention - limited upside

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

Pair Corralation between Walmart and Jacob Asset

If you would invest  4,505  in Walmart on December 5, 2024 and sell it today you would earn a total of  5,254  from holding Walmart or generate 116.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Walmart  vs.  Jacob Asset Management

Walmart

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Walmart are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

Jacob Asset Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jacob Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Jacob Asset is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Walmart and Jacob Asset

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

The idea behind Walmart and Jacob Asset Management 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.