Correlation Between Walmart and APPLE
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By analyzing existing cross correlation between Walmart and APPLE INC, you can compare the effects of market volatilities on Walmart and APPLE 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 APPLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and APPLE.
Diversification Opportunities for Walmart and APPLE
Excellent diversification
The 3 months correlation between Walmart and APPLE is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and APPLE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLE INC 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 APPLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APPLE INC has no effect on the direction of Walmart i.e., Walmart and APPLE go up and down completely randomly.
Pair Corralation between Walmart and APPLE
Considering the 90-day investment horizon Walmart is expected to generate 1.82 times less return on investment than APPLE. But when comparing it to its historical volatility, Walmart is 2.88 times less risky than APPLE. It trades about 0.28 of its potential returns per unit of risk. APPLE INC is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 6,294 in APPLE INC on August 24, 2024 and sell it today you would earn a total of 649.00 from holding APPLE INC or generate 10.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Walmart vs. APPLE INC
Performance |
| Timeline |
| Walmart |
| APPLE INC |
Walmart and APPLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and APPLE
The main advantage of trading using opposite Walmart and APPLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, APPLE 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 APPLE will offset losses from the drop in APPLE's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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