Correlation Between Walmart and PHILIP
Specify exactly 2 symbols:
By analyzing existing cross correlation between Walmart and PHILIP MORRIS INTL, you can compare the effects of market volatilities on Walmart and PHILIP 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 PHILIP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and PHILIP.
Diversification Opportunities for Walmart and PHILIP
Very good diversification
The 3 months correlation between Walmart and PHILIP is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and PHILIP MORRIS INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHILIP MORRIS INTL 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 PHILIP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHILIP MORRIS INTL has no effect on the direction of Walmart i.e., Walmart and PHILIP go up and down completely randomly.
Pair Corralation between Walmart and PHILIP
Considering the 90-day investment horizon Walmart is expected to generate 3.34 times more return on investment than PHILIP. However, Walmart is 3.34 times more volatile than PHILIP MORRIS INTL. It trades about 0.59 of its potential returns per unit of risk. PHILIP MORRIS INTL is currently generating about 0.27 per unit of risk. If you would invest 8,245 in Walmart on September 5, 2024 and sell it today you would earn a total of 1,200 from holding Walmart or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Walmart vs. PHILIP MORRIS INTL
Performance |
| Timeline |
| Walmart |
| PHILIP MORRIS INTL |
Walmart and PHILIP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and PHILIP
The main advantage of trading using opposite Walmart and PHILIP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, PHILIP 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 PHILIP will offset losses from the drop in PHILIP's long position.| Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation | Walmart vs. Via Renewables |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |