Correlation Between Qualcomm Incorporated and WALMART

Can any of the company-specific risk be diversified away by investing in both Qualcomm Incorporated 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 Qualcomm Incorporated and WALMART into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Qualcomm Incorporated and WALMART INC 4875, you can compare the effects of market volatilities on Qualcomm Incorporated 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 Qualcomm Incorporated with a short position of WALMART. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qualcomm Incorporated and WALMART.

Diversification Opportunities for Qualcomm Incorporated and WALMART

-0.31

Correlation Coefficient

Qualcomm Incorporated  WALMART

Very good diversification

The 3 months correlation between Qualcomm and WALMART is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Qualcomm Incorporated and WALMART INC 4875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WALMART INC 4875 and Qualcomm Incorporated 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 Qualcomm Incorporated 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 INC 4875 has no effect on the direction of Qualcomm Incorporated i.e., Qualcomm Incorporated and WALMART go up and down completely randomly.

Pair Corralation between Qualcomm Incorporated and WALMART

Given the investment horizon of 90 days Qualcomm Incorporated is expected to generate 2.84 times more return on investment than WALMART. However, Qualcomm Incorporated is 2.84 times more volatile than WALMART INC 4875. It trades about 0.17 of its potential returns per unit of risk. WALMART INC 4875 is currently generating about 0.02 per unit of risk. If you would invest  14,593  in Qualcomm Incorporated on July 31, 2025 and sell it today you would earn a total of  3,510  from holding Qualcomm Incorporated or generate 24.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	74.6%
Values	Daily Returns

Qualcomm Incorporated  vs.  WALMART INC 4875

Qualcomm Incorporated

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Qualcomm Incorporated are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Qualcomm Incorporated displayed solid returns over the last few months and may actually be approaching a breakup point.

WALMART INC 4875

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in WALMART INC 4875 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, WALMART is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Qualcomm Incorporated and WALMART

The main advantage of trading using opposite Qualcomm Incorporated and WALMART positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qualcomm Incorporated 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 Qualcomm Incorporated and WALMART INC 4875 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.