Correlation Between Fortinet and Walmart

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Can any of the company-specific risk be diversified away by investing in both Fortinet 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 Fortinet and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortinet and Walmart, you can compare the effects of market volatilities on Fortinet 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 Fortinet with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortinet and Walmart.

Diversification Opportunities for Fortinet and Walmart

-0.52
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Fortinet and Walmart is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Fortinet and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and Fortinet 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 Fortinet 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 Fortinet i.e., Fortinet and Walmart go up and down completely randomly.

Pair Corralation between Fortinet and Walmart

Given the investment horizon of 90 days Fortinet is expected to generate 2.07 times more return on investment than Walmart. However, Fortinet is 2.07 times more volatile than Walmart. It trades about 0.07 of its potential returns per unit of risk. Walmart is currently generating about 0.0 per unit of risk. If you would invest  2,366  in Fortinet on June 28, 2022 and sell it today you would earn a total of  2,463  from holding Fortinet or generate 104.1% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Fortinet  vs.  Walmart

 Performance (%) 
       Timeline  
Fortinet 
Fortinet Performance
0 of 100
Over the last 90 days Fortinet has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in October 2022. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Fortinet Price Channel

Walmart 
Walmart Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Walmart are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady primary indicators, Walmart may actually be approaching a critical reversion point that can send shares even higher in October 2022.

Walmart Price Channel

Fortinet and Walmart Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fortinet and Walmart

The main advantage of trading using opposite Fortinet and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortinet 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.
Fortinet vs. Kibush Capital Corp
The idea behind Fortinet and Walmart 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.
Walmart vs. Wal-Mart DE Mex
Walmart vs. Kibush Capital Corp
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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