Correlation Between Walmart and HERSHEY
Specify exactly 2 symbols:
By analyzing existing cross correlation between Walmart and HERSHEY 72 percent, you can compare the effects of market volatilities on Walmart and HERSHEY 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 HERSHEY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and HERSHEY.
Diversification Opportunities for Walmart and HERSHEY
Very weak diversification
The 3 months correlation between Walmart and HERSHEY is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and HERSHEY 72 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HERSHEY 72 percent 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 HERSHEY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HERSHEY 72 percent has no effect on the direction of Walmart i.e., Walmart and HERSHEY go up and down completely randomly.
Pair Corralation between Walmart and HERSHEY
Considering the 90-day investment horizon Walmart is expected to generate 1.16 times less return on investment than HERSHEY. But when comparing it to its historical volatility, Walmart is 2.19 times less risky than HERSHEY. It trades about 0.59 of its potential returns per unit of risk. HERSHEY 72 percent is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 10,743 in HERSHEY 72 percent on September 5, 2024 and sell it today you would earn a total of 382.00 from holding HERSHEY 72 percent or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 22.73% |
| Values | Daily Returns |
Walmart vs. HERSHEY 72 percent
Performance |
| Timeline |
| Walmart |
| HERSHEY 72 percent |
Walmart and HERSHEY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and HERSHEY
The main advantage of trading using opposite Walmart and HERSHEY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, HERSHEY 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 HERSHEY will offset losses from the drop in HERSHEY's long position.| Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation | Walmart vs. Via Renewables |
| HERSHEY vs. The Travelers Companies | HERSHEY vs. GE Aerospace | HERSHEY vs. Walmart | HERSHEY 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |