Correlation Between Walmart and KENNAMETAL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Walmart and KENNAMETAL INC 4625, you can compare the effects of market volatilities on Walmart and KENNAMETAL 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 KENNAMETAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and KENNAMETAL.
Diversification Opportunities for Walmart and KENNAMETAL
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walmart and KENNAMETAL is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and KENNAMETAL INC 4625 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENNAMETAL INC 4625 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 KENNAMETAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENNAMETAL INC 4625 has no effect on the direction of Walmart i.e., Walmart and KENNAMETAL go up and down completely randomly.
Pair Corralation between Walmart and KENNAMETAL
Considering the 90-day investment horizon Walmart is expected to generate 0.97 times more return on investment than KENNAMETAL. However, Walmart is 1.03 times less risky than KENNAMETAL. It trades about 0.49 of its potential returns per unit of risk. KENNAMETAL INC 4625 is currently generating about -0.17 per unit of risk. If you would invest 8,421 in Walmart on September 12, 2024 and sell it today you would earn a total of 1,034 from holding Walmart or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Walmart vs. KENNAMETAL INC 4625
Performance |
| Timeline |
| Walmart |
| KENNAMETAL INC 4625 |
Walmart and KENNAMETAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and KENNAMETAL
The main advantage of trading using opposite Walmart and KENNAMETAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, KENNAMETAL 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 KENNAMETAL will offset losses from the drop in KENNAMETAL's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| KENNAMETAL vs. AEP TEX INC | KENNAMETAL vs. US BANK NATIONAL | KENNAMETAL vs. Applied Blockchain | KENNAMETAL vs. BigBearai Holdings |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |