Correlation Between Walmart and LOCKHEED
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By analyzing existing cross correlation between Walmart and LOCKHEED MARTIN P, you can compare the effects of market volatilities on Walmart and LOCKHEED 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 LOCKHEED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and LOCKHEED.
Diversification Opportunities for Walmart and LOCKHEED
Excellent diversification
The 3 months correlation between Walmart and LOCKHEED is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and LOCKHEED MARTIN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOCKHEED MARTIN 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 LOCKHEED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOCKHEED MARTIN P has no effect on the direction of Walmart i.e., Walmart and LOCKHEED go up and down completely randomly.
Pair Corralation between Walmart and LOCKHEED
Considering the 90-day investment horizon Walmart is expected to generate 1.22 times more return on investment than LOCKHEED. However, Walmart is 1.22 times more volatile than LOCKHEED MARTIN P. It trades about 0.23 of its potential returns per unit of risk. LOCKHEED MARTIN P is currently generating about 0.09 per unit of risk. If you would invest 6,486 in Walmart on August 24, 2024 and sell it today you would earn a total of 2,353 from holding Walmart or generate 36.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.4% |
| Values | Daily Returns |
Walmart vs. LOCKHEED MARTIN P
Performance |
| Timeline |
| Walmart |
| LOCKHEED MARTIN P |
Walmart and LOCKHEED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and LOCKHEED
The main advantage of trading using opposite Walmart and LOCKHEED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, LOCKHEED 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 LOCKHEED will offset losses from the drop in LOCKHEED's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| LOCKHEED vs. Integral Ad Science | LOCKHEED vs. Warner Music Group | LOCKHEED vs. Kinetik Holdings | LOCKHEED vs. CarsalesCom Ltd ADR |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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