Correlation Between Walmart and Fastenal
Can any of the company-specific risk be diversified away by investing in both Walmart and Fastenal 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 Walmart and Fastenal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Fastenal Company, you can compare the effects of market volatilities on Walmart and Fastenal 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 Walmart with a short position of Fastenal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Fastenal.
Diversification Opportunities for Walmart and Fastenal
Very good diversification
The 3 months correlation between Walmart and Fastenal is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Fastenal Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fastenal and Walmart 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 Walmart are associated (or correlated) with Fastenal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fastenal has no effect on the direction of Walmart i.e., Walmart and Fastenal go up and down completely randomly.
Pair Corralation between Walmart and Fastenal
Considering the 90-day investment horizon Walmart is expected to generate 0.84 times more return on investment than Fastenal. However, Walmart is 1.19 times less risky than Fastenal. It trades about 0.15 of its potential returns per unit of risk. Fastenal Company is currently generating about -0.07 per unit of risk. If you would invest 9,545 in Walmart on July 21, 2025 and sell it today you would earn a total of 1,228 from holding Walmart or generate 12.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. Fastenal Company
Performance |
| Timeline |
| Walmart |
| Fastenal |
Walmart and Fastenal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Fastenal
The main advantage of trading using opposite Walmart and Fastenal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Fastenal 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 Fastenal will offset losses from the drop in Fastenal's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar General | Walmart vs. Ollies Bargain Outlet | Walmart vs. PriceSmart |
| Fastenal vs. Ferguson Plc | Fastenal vs. WW Grainger | Fastenal vs. Carrier Global Corp | Fastenal vs. PACCAR Inc |
Check out your portfolio center.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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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