Correlation Between Apple and Walmart

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

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

Diversification Opportunities for Apple and Walmart

0.76

Correlation Coefficient

Apple  Walmart

Poor diversification

The 3 months correlation between Apple and Walmart is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc DRC and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and Apple 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 Apple Inc DRC 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 Apple i.e., Apple and Walmart go up and down completely randomly.

Pair Corralation between Apple and Walmart

Assuming the 90 days trading horizon Apple Inc DRC is expected to generate 1.07 times more return on investment than Walmart. However, Apple is 1.07 times more volatile than Walmart. It trades about 0.08 of its potential returns per unit of risk. Walmart is currently generating about 0.06 per unit of risk. If you would invest  1,252,500  in Apple Inc DRC on April 24, 2025 and sell it today you would earn a total of  102,500  from holding Apple Inc DRC or generate 8.18% return on investment over 90 days.

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

Apple Inc DRC  vs.  Walmart

Apple Inc DRC

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc DRC are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Walmart

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Walmart are ranked lower than 4 (%) 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 Apple and Walmart

The main advantage of trading using opposite Apple and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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 Apple Inc DRC 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.