Correlation Between Walmart and SUNOCO
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By analyzing existing cross correlation between Walmart and SUNOCO LOGISTICS PARTNERS, you can compare the effects of market volatilities on Walmart and SUNOCO 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 SUNOCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and SUNOCO.
Diversification Opportunities for Walmart and SUNOCO
Pay attention - limited upside
The 3 months correlation between Walmart and SUNOCO is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and SUNOCO LOGISTICS PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNOCO LOGISTICS PARTNERS 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 SUNOCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNOCO LOGISTICS PARTNERS has no effect on the direction of Walmart i.e., Walmart and SUNOCO go up and down completely randomly.
Pair Corralation between Walmart and SUNOCO
Considering the 90-day investment horizon Walmart is expected to generate 1.9 times more return on investment than SUNOCO. However, Walmart is 1.9 times more volatile than SUNOCO LOGISTICS PARTNERS. It trades about 0.55 of its potential returns per unit of risk. SUNOCO LOGISTICS PARTNERS is currently generating about -0.19 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 1,106 from holding Walmart or generate 13.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walmart vs. SUNOCO LOGISTICS PARTNERS
Performance |
| Timeline |
| Walmart |
| SUNOCO LOGISTICS PARTNERS |
Walmart and SUNOCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and SUNOCO
The main advantage of trading using opposite Walmart and SUNOCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, SUNOCO 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 SUNOCO will offset losses from the drop in SUNOCO'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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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