Correlation Between Walmart and Jaws Juggernaut

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

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

Diversification Opportunities for Walmart and Jaws Juggernaut

0.86

Correlation Coefficient

Walmart  Jaws Juggernaut

Very poor diversification

The 3 months correlation between Walmart and Jaws is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Jaws Juggernaut Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaws Juggernaut Acqu 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 Jaws Juggernaut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaws Juggernaut Acqu has no effect on the direction of Walmart i.e., Walmart and Jaws Juggernaut go up and down completely randomly.

Pair Corralation between Walmart and Jaws Juggernaut

If you would invest  8,389  in Walmart on September 19, 2024 and sell it today you would earn a total of  1,153  from holding Walmart or generate 13.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	4.76%
Values	Daily Returns

Walmart  vs.  Jaws Juggernaut Acquisition

Walmart

Risk-Adjusted Performance

25 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Walmart are ranked lower than 25 (%) 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.

Jaws Juggernaut Acqu

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jaws Juggernaut Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Jaws Juggernaut is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Walmart and Jaws Juggernaut

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

The idea behind Walmart and Jaws Juggernaut Acquisition 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.