Correlation Between Walmart and SPECTRA
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By analyzing existing cross correlation between Walmart and SPECTRA ENERGY PARTNERS, you can compare the effects of market volatilities on Walmart and SPECTRA 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 SPECTRA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and SPECTRA.
Diversification Opportunities for Walmart and SPECTRA
Excellent diversification
The 3 months correlation between Walmart and SPECTRA is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and SPECTRA ENERGY PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPECTRA ENERGY PARTNERS 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 SPECTRA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPECTRA ENERGY PARTNERS has no effect on the direction of Walmart i.e., Walmart and SPECTRA go up and down completely randomly.
Pair Corralation between Walmart and SPECTRA
Considering the 90-day investment horizon Walmart is expected to generate 73.77 times less return on investment than SPECTRA. But when comparing it to its historical volatility, Walmart is 104.34 times less risky than SPECTRA. It trades about 0.14 of its potential returns per unit of risk. SPECTRA ENERGY PARTNERS is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 8,485 in SPECTRA ENERGY PARTNERS on September 11, 2024 and sell it today you would earn a total of 292.00 from holding SPECTRA ENERGY PARTNERS or generate 3.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 68.08% |
Values | Daily Returns |
Walmart vs. SPECTRA ENERGY PARTNERS
Performance |
Timeline |
Walmart |
SPECTRA ENERGY PARTNERS |
Walmart and SPECTRA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Walmart and SPECTRA
The main advantage of trading using opposite Walmart and SPECTRA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, SPECTRA 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 SPECTRA will offset losses from the drop in SPECTRA's long position.Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
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Check out your portfolio center.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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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