Correlation Between GUGGENHEIM MULTI-HEDGE and Walmart

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

Diversification Opportunities for GUGGENHEIM MULTI-HEDGE and Walmart

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between GUGGENHEIM and Walmart is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GUGGENHEIM MULTI-HEDGE STRATEG and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and GUGGENHEIM MULTI-HEDGE 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 GUGGENHEIM MULTI-HEDGE STRATEGIES 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 GUGGENHEIM MULTI-HEDGE i.e., GUGGENHEIM MULTI-HEDGE and Walmart go up and down completely randomly.

Pair Corralation between GUGGENHEIM MULTI-HEDGE and Walmart

If you would invest  13,807  in Walmart on September 10, 2022 and sell it today you would earn a total of  1,071  from holding Walmart or generate 7.76% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.56%
ValuesDaily Returns

GUGGENHEIM MULTI-HEDGE STRATEG  vs.  Walmart

 Performance (%) 
       Timeline  
GUGGENHEIM MULTI-HEDGE 
GUGGENHEIM Performance
0 of 100
Over the last 90 days GUGGENHEIM MULTI-HEDGE STRATEGIES has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, GUGGENHEIM MULTI-HEDGE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Walmart 
Walmart Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Walmart are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak primary indicators, Walmart may actually be approaching a critical reversion point that can send shares even higher in January 2023.

Walmart Price Channel

GUGGENHEIM MULTI-HEDGE and Walmart Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GUGGENHEIM MULTI-HEDGE and Walmart

The main advantage of trading using opposite GUGGENHEIM MULTI-HEDGE and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUGGENHEIM MULTI-HEDGE 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.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against GUGGENHEIM MULTI-HEDGE as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. GUGGENHEIM MULTI-HEDGE's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, GUGGENHEIM MULTI-HEDGE's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to GUGGENHEIM MULTI-HEDGE STRATEGIES.
The idea behind GUGGENHEIM MULTI-HEDGE STRATEGIES 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.
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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