Correlation Between Walmart and PETROLEOS
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By analyzing existing cross correlation between Walmart and PETROLEOS MEXICANOS 65, you can compare the effects of market volatilities on Walmart and PETROLEOS 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 PETROLEOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and PETROLEOS.
Diversification Opportunities for Walmart and PETROLEOS
Excellent diversification
The 3 months correlation between Walmart and PETROLEOS is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and PETROLEOS MEXICANOS 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PETROLEOS MEXICANOS 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 PETROLEOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PETROLEOS MEXICANOS has no effect on the direction of Walmart i.e., Walmart and PETROLEOS go up and down completely randomly.
Pair Corralation between Walmart and PETROLEOS
Considering the 90-day investment horizon Walmart is expected to generate 0.4 times more return on investment than PETROLEOS. However, Walmart is 2.52 times less risky than PETROLEOS. It trades about 0.49 of its potential returns per unit of risk. PETROLEOS MEXICANOS 65 is currently generating about -0.24 per unit of risk. If you would invest 8,421 in Walmart on September 12, 2024 and sell it today you would earn a total of 1,034 from holding Walmart or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. PETROLEOS MEXICANOS 65
Performance |
| Timeline |
| Walmart |
| PETROLEOS MEXICANOS |
Walmart and PETROLEOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and PETROLEOS
The main advantage of trading using opposite Walmart and PETROLEOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, PETROLEOS 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 PETROLEOS will offset losses from the drop in PETROLEOS's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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