Correlation Between BSAE and Walmart
Can any of the company-specific risk be diversified away by investing in both BSAE and Walmart 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 BSAE and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BSAE and Walmart, you can compare the effects of market volatilities on BSAE and Walmart 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 BSAE with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of BSAE and Walmart.
Diversification Opportunities for BSAE and Walmart
Pay attention - limited upside
The 3 months correlation between BSAE and Walmart is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BSAE and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and BSAE 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 BSAE are associated (or correlated) with Walmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walmart has no effect on the direction of BSAE i.e., BSAE and Walmart go up and down completely randomly.
Pair Corralation between BSAE and Walmart
If you would invest (100.00) in BSAE on January 26, 2024 and sell it today you would earn a total of 100.00 from holding BSAE 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 |
BSAE vs. Walmart
Performance |
| Timeline |
| BSAE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Walmart |
BSAE and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BSAE and Walmart
The main advantage of trading using opposite BSAE and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BSAE position performs unexpectedly, Walmart 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 Walmart will offset losses from the drop in Walmart's long position.| BSAE vs. SPDR Bloomberg International | BSAE vs. VanEck JP Morgan | BSAE vs. Invesco Fundamental High | BSAE vs. iShares MBS ETF |
| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Big Lots |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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