Walmart Cdr Stock Volatility
| WMT Stock | 50.20 0.28 0.55% |
As of now, Walmart Stock is very steady. Walmart CDR shows Sharpe Ratio of 0.13, which attests that the company had a 0.13 % return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Walmart CDR, which you can use to evaluate the volatility of the company. Please check out Walmart CDR's Market Risk Adjusted Performance of (2.60), downside deviation of 1.0, and Mean Deviation of 1.01 to validate if the risk estimate we provide is consistent with the expected return of 0.19%.
Sharpe Ratio = 0.1309
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Estimated Market Risk
| 1.41 actual daily | 12 88% of assets are more volatile |
Expected Return
| 0.19 actual daily | 3 97% of assets have higher returns |
Risk-Adjusted Return
| 0.13 actual daily | 10 90% of assets perform better |
Based on monthly moving average Walmart CDR is performing at about 10% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Walmart CDR by adding it to a well-diversified portfolio.
Key indicators related to Walmart CDR's volatility include:180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
Walmart CDR Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Walmart daily returns, and it is calculated using variance and standard deviation. We also use Walmart's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Walmart CDR volatility.
Walmart |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Walmart CDR can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Walmart CDR at lower prices. For example, an investor can purchase Walmart stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Walmart CDR's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns. Main indicators related to Walmart CDR's market risk premium analysis include:
Beta (0.06) | Alpha 0.17 | Risk 1.41 | Sharpe Ratio 0.13 | Expected Return 0.19 |
Moving together with Walmart Stock
| 0.7 | GOOG | Alphabet CDR | PairCorr |
| 0.7 | GOOG | Alphabet CDR | PairCorr |
| 0.97 | WMT | Walmart Inc CDR | PairCorr |
| 0.79 | VWA | VOLKSWAGEN CDR | PairCorr |
| 0.75 | UPS | UPS CDR Earnings Call This Week | PairCorr |
| 0.76 | TIG | Triumph Gold Corp | PairCorr |
| 0.65 | PGDC | Patagonia Gold Corp | PairCorr |
| 0.83 | MGG | Minaurum Gold | PairCorr |
| 0.91 | MTL | Mullen Group | PairCorr |
| 0.84 | AUXX | Gold X2 Mining | PairCorr |
| 0.68 | TSLV | Tier One Silver | PairCorr |
Moving against Walmart Stock
| 0.82 | NFLX | Netflix Inc CDR | PairCorr |
| 0.73 | MSFT | Microsoft Corp CDR | PairCorr |
| 0.73 | MSFT | Microsoft CDR Earnings Call This Week | PairCorr |
| 0.55 | NVDA | NVIDIA CDR | PairCorr |
| 0.55 | NVDA | Nvidia CDR | PairCorr |
Walmart CDR Market Sensitivity And Downside Risk
Walmart CDR's beta coefficient measures the volatility of Walmart stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Walmart stock's returns against your selected market. In other words, Walmart CDR's beta of -0.0623 provides an investor with an approximation of how much risk Walmart CDR stock can potentially add to one of your existing portfolios. Walmart CDR has low volatility with Treynor Ratio of -2.61, Maximum Drawdown of 8.57 and kurtosis of 6.08. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Walmart CDR's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Walmart CDR's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Walmart CDR Demand TrendCheck current 90 days Walmart CDR correlation with market (Dow Jones Industrial)Walmart CDR Volatility and Downside Risk
Walmart standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Walmart CDR Stock Volatility Analysis
Volatility refers to the frequency at which Walmart CDR stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Walmart CDR's price changes. Investors will then calculate the volatility of Walmart CDR's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Walmart CDR's volatility:
Historical Volatility
This type of stock volatility measures Walmart CDR's fluctuations based on previous trends. It's commonly used to predict Walmart CDR's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Walmart CDR's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Walmart CDR's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Developed by Larry Williams, the Weighted Close is the average of Walmart CDR high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only Walmart CDR closing price as input.
Walmart CDR Projected Return Density Against Market
Assuming the 90 days trading horizon Walmart CDR has a beta of -0.0623 . This entails as returns on the benchmark increase, returns on holding Walmart CDR are expected to decrease at a much lower rate. During a bear market, however, Walmart CDR is likely to outperform the market.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Walmart CDR or Walmart sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Walmart CDR's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Walmart stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Walmart CDR has an alpha of 0.1681, implying that it can generate a 0.17 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Walmart CDR Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Walmart CDR Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Walmart CDR is 764.0. The daily returns are distributed with a variance of 2.0 and standard deviation of 1.41. The mean deviation of Walmart CDR is currently at 1.02. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α | Alpha over Dow Jones | 0.17 | |
β | Beta against Dow Jones | -0.06 | |
σ | Overall volatility | 1.41 | |
Ir | Information ratio | 0.05 |
Walmart CDR Stock Return Volatility
Walmart CDR historical daily return volatility represents how much of Walmart CDR stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm assumes 1.4141% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7411% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Risk-Adjusted Indicators
There is a big difference between Walmart Stock performing well and Walmart CDR Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Walmart CDR's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| NVDA | 1.66 | (0.04) | (0.05) | 0.00 | 1.93 | 3.08 | 9.47 | |||
| NVDA | 1.66 | (0.04) | (0.05) | (0.01) | 1.93 | 3.08 | 9.47 | |||
| GOOG | 1.41 | 0.37 | 0.20 | 1.62 | 1.16 | 3.31 | 9.38 | |||
| AAPL | 0.84 | (0.03) | 0.00 | (2.19) | 0.00 | 2.14 | 8.60 | |||
| GOOG | 1.41 | 0.37 | 0.20 | 1.62 | 1.16 | 3.31 | 9.38 | |||
| AAPL | 0.84 | (0.03) | 0.00 | (2.19) | 0.00 | 2.14 | 8.60 | |||
| NFLX | 1.54 | (0.54) | 0.00 | (1.61) | 0.00 | 2.73 | 13.33 | |||
| MSFT | 1.01 | (0.28) | 0.00 | (0.47) | 0.00 | 1.59 | 5.02 | |||
| MSFT | 1.01 | (0.28) | 0.00 | (0.47) | 0.00 | 1.59 | 5.02 | |||
| AMZN | 1.37 | 0.07 | 0.02 | 0.21 | 1.63 | 2.85 | 13.75 |
About Walmart CDR Volatility
Volatility is a rate at which the price of Walmart CDR or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Walmart CDR may increase or decrease. In other words, similar to Walmart's beta indicator, it measures the risk of Walmart CDR and helps estimate the fluctuations that may happen in a short period of time. So if prices of Walmart CDR fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.3 ways to utilize Walmart CDR's volatility to invest better
Higher Walmart CDR's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Walmart CDR stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Walmart CDR stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Walmart CDR investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Walmart CDR's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Walmart CDR's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Walmart CDR Investment Opportunity
Walmart CDR has a volatility of 1.41 and is 1.91 times more volatile than Dow Jones Industrial. 12 percent of all equities and portfolios are less risky than Walmart CDR. You can use Walmart CDR to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Walmart CDR to be traded at 49.2 in 90 days.Good diversification
The correlation between Walmart CDR and DJI is -0.03 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Walmart CDR and DJI in the same portfolio, assuming nothing else is changed.
Walmart CDR Additional Risk Indicators
The analysis of Walmart CDR's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Walmart CDR's investment and either accepting that risk or mitigating it. Along with some common measures of Walmart CDR stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0967 | |||
| Market Risk Adjusted Performance | (2.60) | |||
| Mean Deviation | 1.01 | |||
| Semi Deviation | 0.8447 | |||
| Downside Deviation | 1.0 | |||
| Coefficient Of Variation | 801.18 | |||
| Standard Deviation | 1.38 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Walmart CDR Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
| Dupont De vs. Walmart CDR | ||
| Alphabet vs. Walmart CDR | ||
| Microsoft vs. Walmart CDR | ||
| Ford vs. Walmart CDR | ||
| GM vs. Walmart CDR | ||
| Visa vs. Walmart CDR | ||
| Walker Dunlop vs. Walmart CDR | ||
| Citigroup vs. Walmart CDR | ||
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Walmart CDR as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Walmart CDR's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Walmart CDR's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Walmart CDR.
Other Information on Investing in Walmart Stock
Walmart CDR financial ratios help investors to determine whether Walmart Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Walmart with respect to the benefits of owning Walmart CDR security.