Correlation Between Walmart and EXXON
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By analyzing existing cross correlation between Walmart and EXXON MOBIL P, you can compare the effects of market volatilities on Walmart and EXXON 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 EXXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and EXXON.
Diversification Opportunities for Walmart and EXXON
Very good diversification
The 3 months correlation between Walmart and EXXON is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and EXXON MOBIL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXXON MOBIL P 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 EXXON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXXON MOBIL P has no effect on the direction of Walmart i.e., Walmart and EXXON go up and down completely randomly.
Pair Corralation between Walmart and EXXON
Considering the 90-day investment horizon Walmart is expected to generate 0.99 times more return on investment than EXXON. However, Walmart is 1.01 times less risky than EXXON. It trades about 0.13 of its potential returns per unit of risk. EXXON MOBIL P is currently generating about -0.01 per unit of risk. If you would invest 4,796 in Walmart on September 3, 2024 and sell it today you would earn a total of 4,454 from holding Walmart or generate 92.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Walmart vs. EXXON MOBIL P
Performance |
| Timeline |
| Walmart |
| EXXON MOBIL P |
Walmart and EXXON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and EXXON
The main advantage of trading using opposite Walmart and EXXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, EXXON 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 EXXON will offset losses from the drop in EXXON's long position.| Walmart vs. Partner Communications | Walmart vs. Merck Company | Walmart vs. Western Midstream Partners | Walmart vs. Edgewise Therapeutics |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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