Correlation Between Walmart and Stanley Black
Can any of the company-specific risk be diversified away by investing in both Walmart and Stanley Black 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 Stanley Black into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Stanley Black Decker, you can compare the effects of market volatilities on Walmart and Stanley Black 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 Stanley Black. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Stanley Black.
Diversification Opportunities for Walmart and Stanley Black
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walmart and Stanley is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Stanley Black Decker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stanley Black Decker 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 Stanley Black. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stanley Black Decker has no effect on the direction of Walmart i.e., Walmart and Stanley Black go up and down completely randomly.
Pair Corralation between Walmart and Stanley Black
If you would invest 4,328 in Walmart on October 25, 2024 and sell it today you would earn a total of 1,632 from holding Walmart or generate 37.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Walmart vs. Stanley Black Decker
Performance |
| Timeline |
| Walmart |
| Stanley Black Decker |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walmart and Stanley Black Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Stanley Black
The main advantage of trading using opposite Walmart and Stanley Black positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Stanley Black 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 Stanley Black will offset losses from the drop in Stanley Black's long position.| Walmart vs. Spire Healthcare Group | Walmart vs. Eco Animal Health | Walmart vs. JLEN Environmental Assets | Walmart vs. Foresight Environmental Infrastructure |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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