Correlation Between Walmart and Voya Equity

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

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

Diversification Opportunities for Walmart and Voya Equity

0.0

Correlation Coefficient

Walmart  Voya Equity

Pay attention - limited upside

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

Pair Corralation between Walmart and Voya Equity

If you would invest (100.00) in Voya Equity Trust on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Voya Equity Trust or generate -100.0% return on investment over 90 days.

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

Walmart  vs.  Voya Equity Trust

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

Voya Equity Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Voya Equity Trust has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Voya Equity is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Walmart and Voya Equity

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

The idea behind Walmart and Voya Equity 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.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.