Correlation Between Walmart and SunPower
Can any of the company-specific risk be diversified away by investing in both Walmart and SunPower 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 SunPower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and SunPower, you can compare the effects of market volatilities on Walmart and SunPower 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 SunPower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and SunPower.
Diversification Opportunities for Walmart and SunPower
Excellent diversification
The 3 months correlation between Walmart and SunPower is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and SunPower in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunPower 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 SunPower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunPower has no effect on the direction of Walmart i.e., Walmart and SunPower go up and down completely randomly.
Pair Corralation between Walmart and SunPower
If you would invest 9,000 in Walmart on November 3, 2024 and sell it today you would earn a total of 816.00 from holding Walmart or generate 9.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Walmart vs. SunPower
Performance |
| Timeline |
| Walmart |
| SunPower |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walmart and SunPower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and SunPower
The main advantage of trading using opposite Walmart and SunPower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, SunPower 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 SunPower will offset losses from the drop in SunPower's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Dollar General |
| SunPower vs. Enphase Energy | SunPower vs. First Solar | SunPower vs. Sunnova Energy International | SunPower vs. SolarEdge Technologies |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |