Correlation Between DOW and Walmart

Analyzing existing cross correlation between DOW and Walmart. You can compare the effects of market volatilities on DOW and Walmart 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 DOW with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of DOW and Walmart.

Comparative Performance

 Predicted Return Density 

DOW  vs.  Walmart Inc

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 1.16 times more return on investment than Walmart. However, DOW is 1.16 times more volatile than Walmart. It trades about 0.12 of its potential returns per unit of risk. Walmart is currently generating about -0.02 per unit of risk. If you would invest  2,782,109  in DOW on January 19, 2020 and sell it today you would earn a total of  157,699  from holding DOW or generate 5.67% return on investment over 30 days.

Pair Corralation between DOW and Walmart

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for DOW and Walmart

DOW diversification synergy

Excellent diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and Walmart Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Walmart and DOW 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 DOW are associated (or correlated) with Walmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walmart has no effect on the direction of DOW i.e. DOW and Walmart go up and down completely randomly.
Check out your portfolio center. Please also try Price Transformation module to use price transformation models to analyze depth of different equity instruments across global markets.