Correlation Between Walmart and ONEOK
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By analyzing existing cross correlation between Walmart and ONEOK INC NEW, you can compare the effects of market volatilities on Walmart and ONEOK 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 ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and ONEOK.
Diversification Opportunities for Walmart and ONEOK
Excellent diversification
The 3 months correlation between Walmart and ONEOK is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and ONEOK INC NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK INC NEW 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 ONEOK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONEOK INC NEW has no effect on the direction of Walmart i.e., Walmart and ONEOK go up and down completely randomly.
Pair Corralation between Walmart and ONEOK
Considering the 90-day investment horizon Walmart is expected to generate 0.45 times more return on investment than ONEOK. However, Walmart is 2.2 times less risky than ONEOK. It trades about 0.51 of its potential returns per unit of risk. ONEOK INC NEW is currently generating about -0.19 per unit of risk. If you would invest 8,170 in Walmart on August 30, 2024 and sell it today you would earn a total of 1,018 from holding Walmart or generate 12.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
Walmart vs. ONEOK INC NEW
Performance |
| Timeline |
| Walmart |
| ONEOK INC NEW |
Walmart and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and ONEOK
The main advantage of trading using opposite Walmart and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, ONEOK 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 ONEOK will offset losses from the drop in ONEOK'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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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