Correlation Between Walmart Common and WisdomTree Japan
Can any of the company-specific risk be diversified away by investing in both Walmart Common and WisdomTree Japan 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 Common and WisdomTree Japan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart Common Stock and WisdomTree Japan Hedged, you can compare the effects of market volatilities on Walmart Common and WisdomTree Japan 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 Common with a short position of WisdomTree Japan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart Common and WisdomTree Japan.
Diversification Opportunities for Walmart Common and WisdomTree Japan
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Walmart and WisdomTree is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Walmart Common Stock and WisdomTree Japan Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Japan Hedged and Walmart Common 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 Common Stock are associated (or correlated) with WisdomTree Japan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Japan Hedged has no effect on the direction of Walmart Common i.e., Walmart Common and WisdomTree Japan go up and down completely randomly.
Pair Corralation between Walmart Common and WisdomTree Japan
Considering the 90-day investment horizon Walmart Common Stock is expected to generate 1.39 times more return on investment than WisdomTree Japan. However, Walmart Common is 1.39 times more volatile than WisdomTree Japan Hedged. It trades about 0.26 of its potential returns per unit of risk. WisdomTree Japan Hedged is currently generating about 0.22 per unit of risk. If you would invest 10,221 in Walmart Common Stock on November 8, 2025 and sell it today you would earn a total of 2,579 from holding Walmart Common Stock or generate 25.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 91.67% |
| Values | Daily Returns |
Walmart Common Stock vs. WisdomTree Japan Hedged
Performance |
| Timeline |
| Walmart Common Stock |
| WisdomTree Japan Hedged |
Risk-Adjusted Performance
Solid
Weak | Strong |
Walmart Common and WisdomTree Japan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart Common and WisdomTree Japan
The main advantage of trading using opposite Walmart Common and WisdomTree Japan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart Common position performs unexpectedly, WisdomTree Japan 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 WisdomTree Japan will offset losses from the drop in WisdomTree Japan's long position.| Walmart Common vs. Ambev SA ADR | Walmart Common vs. Keurig Dr Pepper | Walmart Common vs. Kimberly Clark | Walmart Common vs. JBS NV |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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