Correlation Between Walmart and LOWES
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By analyzing existing cross correlation between Walmart and LOWES INC 6875, you can compare the effects of market volatilities on Walmart and LOWES 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 LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and LOWES.
Diversification Opportunities for Walmart and LOWES
Very good diversification
The 3 months correlation between Walmart and LOWES is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and LOWES INC 6875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES INC 6875 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 LOWES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOWES INC 6875 has no effect on the direction of Walmart i.e., Walmart and LOWES go up and down completely randomly.
Pair Corralation between Walmart and LOWES
Considering the 90-day investment horizon Walmart is expected to generate 0.93 times more return on investment than LOWES. However, Walmart is 1.08 times less risky than LOWES. It trades about 0.16 of its potential returns per unit of risk. LOWES INC 6875 is currently generating about 0.01 per unit of risk. If you would invest 5,052 in Walmart on September 12, 2024 and sell it today you would earn a total of 4,403 from holding Walmart or generate 87.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.21% |
| Values | Daily Returns |
Walmart vs. LOWES INC 6875
Performance |
| Timeline |
| Walmart |
| LOWES INC 6875 |
Walmart and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and LOWES
The main advantage of trading using opposite Walmart and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, LOWES 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 LOWES will offset losses from the drop in LOWES's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| LOWES vs. Simon Property Group | LOWES vs. Cardinal Health | LOWES vs. Tandem Diabetes Care | LOWES vs. ATRenew Inc DRC |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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