Correlation Between Walmart and Know Labs
Can any of the company-specific risk be diversified away by investing in both Walmart and Know Labs 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 Know Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Know Labs, you can compare the effects of market volatilities on Walmart and Know Labs 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 Know Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Know Labs.
Diversification Opportunities for Walmart and Know Labs
Excellent diversification
The 3 months correlation between Walmart and Know is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Know Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Know Labs 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 Know Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Know Labs has no effect on the direction of Walmart i.e., Walmart and Know Labs go up and down completely randomly.
Pair Corralation between Walmart and Know Labs
Considering the 90-day investment horizon Walmart is expected to generate 0.13 times more return on investment than Know Labs. However, Walmart is 7.96 times less risky than Know Labs. It trades about 0.06 of its potential returns per unit of risk. Know Labs is currently generating about -0.07 per unit of risk. If you would invest 9,683 in Walmart on August 22, 2025 and sell it today you would earn a total of 378.00 from holding Walmart or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 63.49% |
| Values | Daily Returns |
Walmart vs. Know Labs
Performance |
| Timeline |
| Walmart |
| Know Labs |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Walmart and Know Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Know Labs
The main advantage of trading using opposite Walmart and Know Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Know Labs 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 Know Labs will offset losses from the drop in Know Labs' long position.| Walmart vs. Coca Cola European Partners | Walmart vs. Ambev SA ADR | Walmart vs. Dollar General | Walmart vs. Keurig Dr Pepper |
| Know Labs vs. Myseum, | Know Labs vs. Intelligent Protection Management | Know Labs vs. NextTrip | Know Labs vs. Next Technology Holding |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |