Correlation Between Walmart and ALLSTATE
Specify exactly 2 symbols:
By analyzing existing cross correlation between Walmart and ALLSTATE P 328, you can compare the effects of market volatilities on Walmart and ALLSTATE 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 ALLSTATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and ALLSTATE.
Diversification Opportunities for Walmart and ALLSTATE
Excellent diversification
The 3 months correlation between Walmart and ALLSTATE is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and ALLSTATE P 328 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLSTATE P 328 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 ALLSTATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLSTATE P 328 has no effect on the direction of Walmart i.e., Walmart and ALLSTATE go up and down completely randomly.
Pair Corralation between Walmart and ALLSTATE
Considering the 90-day investment horizon Walmart is expected to generate 2.16 times more return on investment than ALLSTATE. However, Walmart is 2.16 times more volatile than ALLSTATE P 328. It trades about 0.49 of its potential returns per unit of risk. ALLSTATE P 328 is currently generating about -0.21 per unit of risk. If you would invest 8,170 in Walmart on August 30, 2024 and sell it today you would earn a total of 1,018 from holding Walmart or generate 12.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 82.61% |
| Values | Daily Returns |
Walmart vs. ALLSTATE P 328
Performance |
| Timeline |
| Walmart |
| ALLSTATE P 328 |
Walmart and ALLSTATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and ALLSTATE
The main advantage of trading using opposite Walmart and ALLSTATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, ALLSTATE 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 ALLSTATE will offset losses from the drop in ALLSTATE's long position.| Walmart vs. Weis Markets | Walmart vs. Ingles Markets Incorporated | Walmart vs. Sendas Distribuidora SA | Walmart vs. Village Super Market |
| ALLSTATE vs. Valneva SE ADR | ALLSTATE vs. Antero Midstream Partners | ALLSTATE vs. Alvotech | ALLSTATE vs. NiSource |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |