Correlation Between Walmart and GraniteShares Platinum

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

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

Diversification Opportunities for Walmart and GraniteShares Platinum

-0.79

Correlation Coefficient

Walmart  GraniteShares Platinum

Pay attention - limited upside

The 3 months correlation between Walmart and GraniteShares is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and GraniteShares Platinum Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares Platinum 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 GraniteShares Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares Platinum has no effect on the direction of Walmart i.e., Walmart and GraniteShares Platinum go up and down completely randomly.

Pair Corralation between Walmart and GraniteShares Platinum

Considering the 90-day investment horizon Walmart is expected to generate 0.78 times more return on investment than GraniteShares Platinum. However, Walmart is 1.28 times less risky than GraniteShares Platinum. It trades about 0.13 of its potential returns per unit of risk. GraniteShares Platinum Trust is currently generating about 0.07 per unit of risk. If you would invest  9,279  in Walmart on October 27, 2024 and sell it today you would earn a total of  197.00  from holding Walmart or generate 2.12% return on investment over 90 days.

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

Walmart  vs.  GraniteShares Platinum Trust

Walmart

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Walmart are ranked lower than 17 (%) 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.

GraniteShares Platinum

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GraniteShares Platinum Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Etf's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

Pair Trading with Walmart and GraniteShares Platinum

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

The idea behind Walmart and GraniteShares Platinum Trust 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 CEOs Directory module to screen CEOs from public companies around the world.