Correlation Between Walmart and BERKSHIRE
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By analyzing existing cross correlation between Walmart and BERKSHIRE HATHAWAY ENERGY, you can compare the effects of market volatilities on Walmart and BERKSHIRE 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 BERKSHIRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and BERKSHIRE.
Diversification Opportunities for Walmart and BERKSHIRE
Pay attention - limited upside
The 3 months correlation between Walmart and BERKSHIRE is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and BERKSHIRE HATHAWAY ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BERKSHIRE HATHAWAY ENERGY 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 BERKSHIRE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BERKSHIRE HATHAWAY ENERGY has no effect on the direction of Walmart i.e., Walmart and BERKSHIRE go up and down completely randomly.
Pair Corralation between Walmart and BERKSHIRE
Considering the 90-day investment horizon Walmart is expected to generate 0.95 times more return on investment than BERKSHIRE. However, Walmart is 1.05 times less risky than BERKSHIRE. It trades about 0.25 of its potential returns per unit of risk. BERKSHIRE HATHAWAY ENERGY is currently generating about -0.04 per unit of risk. If you would invest 6,563 in Walmart on September 1, 2024 and sell it today you would earn a total of 2,687 from holding Walmart or generate 40.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Walmart vs. BERKSHIRE HATHAWAY ENERGY
Performance |
| Timeline |
| Walmart |
| BERKSHIRE HATHAWAY ENERGY |
Walmart and BERKSHIRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and BERKSHIRE
The main advantage of trading using opposite Walmart and BERKSHIRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, BERKSHIRE 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 BERKSHIRE will offset losses from the drop in BERKSHIRE's long position.| Walmart vs. Ingles Markets Incorporated | Walmart vs. Grocery Outlet Holding | Walmart vs. Ocado Group plc | Walmart vs. Sprouts Farmers Market |
| BERKSHIRE vs. MGIC Investment Corp | BERKSHIRE vs. Nexstar Broadcasting Group | BERKSHIRE vs. Black Hills | BERKSHIRE vs. Western Asset Investment |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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