Correlation Between Walmart and CHEVRON
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By analyzing existing cross correlation between Walmart and CHEVRON USA INC, you can compare the effects of market volatilities on Walmart and CHEVRON 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 CHEVRON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and CHEVRON.
Diversification Opportunities for Walmart and CHEVRON
Excellent diversification
The 3 months correlation between Walmart and CHEVRON is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and CHEVRON USA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHEVRON USA 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 CHEVRON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHEVRON USA INC has no effect on the direction of Walmart i.e., Walmart and CHEVRON go up and down completely randomly.
Pair Corralation between Walmart and CHEVRON
Considering the 90-day investment horizon Walmart is expected to generate 1.18 times more return on investment than CHEVRON. However, Walmart is 1.18 times more volatile than CHEVRON USA INC. It trades about 0.24 of its potential returns per unit of risk. CHEVRON USA INC is currently generating about -0.04 per unit of risk. If you would invest 4,993 in Walmart on September 4, 2024 and sell it today you would earn a total of 4,358 from holding Walmart or generate 87.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.78% |
| Values | Daily Returns |
Walmart vs. CHEVRON USA INC
Performance |
| Timeline |
| Walmart |
| CHEVRON USA INC |
Walmart and CHEVRON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and CHEVRON
The main advantage of trading using opposite Walmart and CHEVRON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, CHEVRON 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 CHEVRON will offset losses from the drop in CHEVRON's long position.| Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation | Walmart vs. Via Renewables |
| CHEVRON vs. The Travelers Companies | CHEVRON vs. GE Aerospace | CHEVRON vs. Walmart | CHEVRON 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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