Correlation Between Walmart and BRISTOL
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By analyzing existing cross correlation between Walmart and BRISTOL MYERS SQUIBB CO, you can compare the effects of market volatilities on Walmart and BRISTOL 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 BRISTOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and BRISTOL.
Diversification Opportunities for Walmart and BRISTOL
Pay attention - limited upside
The 3 months correlation between Walmart and BRISTOL is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and BRISTOL MYERS SQUIBB CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRISTOL MYERS SQUIBB 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 BRISTOL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRISTOL MYERS SQUIBB has no effect on the direction of Walmart i.e., Walmart and BRISTOL go up and down completely randomly.
Pair Corralation between Walmart and BRISTOL
Considering the 90-day investment horizon Walmart is expected to generate 1.23 times more return on investment than BRISTOL. However, Walmart is 1.23 times more volatile than BRISTOL MYERS SQUIBB CO. It trades about 0.52 of its potential returns per unit of risk. BRISTOL MYERS SQUIBB CO is currently generating about -0.23 per unit of risk. If you would invest 8,245 in Walmart on September 4, 2024 and sell it today you would earn a total of 1,019 from holding Walmart or generate 12.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Walmart vs. BRISTOL MYERS SQUIBB CO
Performance |
| Timeline |
| Walmart |
| BRISTOL MYERS SQUIBB |
Walmart and BRISTOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and BRISTOL
The main advantage of trading using opposite Walmart and BRISTOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, BRISTOL 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 BRISTOL will offset losses from the drop in BRISTOL's long position.| Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation | Walmart vs. Via Renewables |
| BRISTOL vs. The Travelers Companies | BRISTOL vs. GE Aerospace | BRISTOL vs. Walmart | BRISTOL vs. Pfizer Inc |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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