Correlation Between Andersons and Walmart

Can any of the company-specific risk be diversified away by investing in both Andersons and Walmart at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Andersons and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between The Andersons and Walmart, you can compare the effects of market volatilities on Andersons 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 Andersons with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andersons and Walmart.

Diversification Opportunities for Andersons and Walmart

-0.26

Correlation Coefficient

Andersons  Walmart

Very good diversification

The 3 months correlation between Andersons and Walmart is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding The Andersons and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and Andersons 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 The Andersons 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 Andersons i.e., Andersons and Walmart go up and down completely randomly.

Pair Corralation between Andersons and Walmart

Given the investment horizon of 90 days The Andersons is expected to under-perform the Walmart. In addition to that, Andersons is 2.76 times more volatile than Walmart. It trades about -0.02 of its total potential returns per unit of risk. Walmart is currently generating about -0.01 per unit of volatility. If you would invest  9,909  in Walmart on May 5, 2025 and sell it today you would lose (60.00) from holding Walmart or give up 0.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

The Andersons  vs.  Walmart

Andersons

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Andersons has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Andersons is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Walmart

Risk-Adjusted Performance

Very Weak

Over the last 90 days Walmart has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, Walmart is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Andersons and Walmart

The main advantage of trading using opposite Andersons and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andersons position performs unexpectedly, Walmart 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 Walmart will offset losses from the drop in Walmart's long position.

The idea behind The Andersons and Walmart pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.