Correlation Between Walmart and UNITED
Specify exactly 2 symbols:
By analyzing existing cross correlation between Walmart and UNITED PARCEL SERVICE, you can compare the effects of market volatilities on Walmart and UNITED 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 UNITED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and UNITED.
Diversification Opportunities for Walmart and UNITED
Pay attention - limited upside
The 3 months correlation between Walmart and UNITED is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and UNITED PARCEL SERVICE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED PARCEL SERVICE 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 UNITED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED PARCEL SERVICE has no effect on the direction of Walmart i.e., Walmart and UNITED go up and down completely randomly.
Pair Corralation between Walmart and UNITED
Considering the 90-day investment horizon Walmart is expected to generate 3.04 times more return on investment than UNITED. However, Walmart is 3.04 times more volatile than UNITED PARCEL SERVICE. It trades about 0.24 of its potential returns per unit of risk. UNITED PARCEL SERVICE is currently generating about 0.01 per unit of risk. If you would invest 4,993 in Walmart on September 4, 2024 and sell it today you would earn a total of 4,358 from holding Walmart or generate 87.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.79% |
| Values | Daily Returns |
Walmart vs. UNITED PARCEL SERVICE
Performance |
| Timeline |
| Walmart |
| UNITED PARCEL SERVICE |
Walmart and UNITED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and UNITED
The main advantage of trading using opposite Walmart and UNITED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, UNITED 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 UNITED will offset losses from the drop in UNITED'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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |