Correlation Between Walmart and Occidental
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By analyzing existing cross correlation between Walmart and Occidental Petroleum 645, you can compare the effects of market volatilities on Walmart and Occidental 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 Occidental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Occidental.
Diversification Opportunities for Walmart and Occidental
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walmart and Occidental is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Occidental Petroleum 645 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Occidental Petroleum 645 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 Occidental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Occidental Petroleum 645 has no effect on the direction of Walmart i.e., Walmart and Occidental go up and down completely randomly.
Pair Corralation between Walmart and Occidental
Considering the 90-day investment horizon Walmart is expected to generate 1.54 times more return on investment than Occidental. However, Walmart is 1.54 times more volatile than Occidental Petroleum 645. It trades about 0.14 of its potential returns per unit of risk. Occidental Petroleum 645 is currently generating about 0.0 per unit of risk. If you would invest 4,769 in Walmart on September 4, 2024 and sell it today you would earn a total of 4,582 from holding Walmart or generate 96.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Walmart vs. Occidental Petroleum 645
Performance |
| Timeline |
| Walmart |
| Occidental Petroleum 645 |
Walmart and Occidental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Occidental
The main advantage of trading using opposite Walmart and Occidental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Occidental 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 Occidental will offset losses from the drop in Occidental's long position.| Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation | Walmart vs. Via Renewables |
| Occidental vs. The Travelers Companies | Occidental vs. GE Aerospace | Occidental vs. Walmart | Occidental 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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