Correlation Between Walmart and MARTIN
Specify exactly 2 symbols:
By analyzing existing cross correlation between Walmart and MARTIN MARIETTA MATLS, you can compare the effects of market volatilities on Walmart and MARTIN 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 MARTIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and MARTIN.
Diversification Opportunities for Walmart and MARTIN
Excellent diversification
The 3 months correlation between Walmart and MARTIN is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and MARTIN MARIETTA MATLS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARTIN MARIETTA MATLS 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 MARTIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARTIN MARIETTA MATLS has no effect on the direction of Walmart i.e., Walmart and MARTIN go up and down completely randomly.
Pair Corralation between Walmart and MARTIN
Considering the 90-day investment horizon Walmart is expected to generate 1.0 times more return on investment than MARTIN. However, Walmart is 1.0 times less risky than MARTIN. It trades about 0.28 of its potential returns per unit of risk. MARTIN MARIETTA MATLS is currently generating about -0.06 per unit of risk. If you would invest 8,327 in Walmart on August 24, 2024 and sell it today you would earn a total of 512.00 from holding Walmart or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. MARTIN MARIETTA MATLS
Performance |
| Timeline |
| Walmart |
| MARTIN MARIETTA MATLS |
Walmart and MARTIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and MARTIN
The main advantage of trading using opposite Walmart and MARTIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, MARTIN 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 MARTIN will offset losses from the drop in MARTIN's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |