Correlation Between Mondelez International and WALMART

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

By analyzing existing cross correlation between Mondelez International and WALMART INC 5, you can compare the effects of market volatilities on Mondelez International 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 Mondelez International with a short position of WALMART. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondelez International and WALMART.

Diversification Opportunities for Mondelez International and WALMART

0.0

Correlation Coefficient

Mondelez International  WALMART

Pay attention - limited upside

The 3 months correlation between Mondelez and WALMART is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mondelez International and WALMART INC 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WALMART INC 5 and Mondelez International 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 Mondelez International 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 5 has no effect on the direction of Mondelez International i.e., Mondelez International and WALMART go up and down completely randomly.

Pair Corralation between Mondelez International and WALMART

If you would invest (100.00) in WALMART INC 5 on February 1, 2025 and sell it today you would earn a total of  100.00  from holding WALMART INC 5 or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Mondelez International  vs.  WALMART INC 5

Mondelez International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mondelez International are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, Mondelez International showed solid returns over the last few months and may actually be approaching a breakup point.

WALMART INC 5

Risk-Adjusted Performance

Very Weak

Over the last 90 days WALMART INC 5 has generated negative risk-adjusted returns adding no value to investors with long positions. 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 Mondelez International and WALMART

The main advantage of trading using opposite Mondelez International and WALMART positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondelez International 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 Mondelez International and WALMART INC 5 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.