Walmart Stock Volatility

WMT Stock  USD 147.41  0.54  0.37%   
We consider Walmart very steady. Walmart shows Sharpe Ratio of 0.13, which attests that the company had 0.13% of return per unit of risk over the last 3 months. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Walmart, which you can use to evaluate the future volatility of the company. Please check out Walmart Market Risk Adjusted Performance of 0.2461, mean deviation of 0.5883, and Downside Deviation of 0.6758 to validate if the risk estimate we provide is consistent with the expected return of 0.0909%.
Walmart Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Walmart daily returns, and it is calculated using variance and standard deviation. We also use Walmart's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Walmart volatility.

180 Days Market Risk

Very steady

Chance of Distress

Very Small

180 Days Economic Sensitivity

Slowly supersedes the market

ESG Sustainability

While most ESG disclosures are voluntary, Walmart's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Walmart's managers and investors.
Environment Score
Governance Score
Social Score
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Walmart can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Walmart at lower prices. For example, an investor can purchase Walmart stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Walmart's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving together with Walmart Stock

+0.84GOGrocery Outlet Holding Fiscal Quarter End 30th of June 2023 PairCorr
+0.67WILCG Willi-Food Interna Fiscal Quarter End 30th of June 2023 PairCorr
+0.81ACIAlbertsons Companies Report 25th of July 2023 PairCorr
+0.73CBDCompanhia Brasileira Fiscal Quarter End 30th of June 2023 PairCorr

Moving against Walmart Stock

-0.82ASAISendas Distribuidora Fiscal Quarter End 30th of June 2023 PairCorr
-0.72RADRite Aid Report 22nd of June 2023 PairCorr
-0.68VLGEAVillage Super Market Earnings Call This WeekPairCorr
-0.6SPTNSpartanNash Downward RallyPairCorr

Walmart Market Sensitivity And Downside Risk

Walmart's beta coefficient measures the volatility of Walmart stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Walmart stock's returns against your selected market. In other words, Walmart's beta of 0.25 provides an investor with an approximation of how much risk Walmart stock can potentially add to one of your existing portfolios.
Walmart exhibits relatively low volatility with skewness of 0.09 and kurtosis of -0.51. However, we advice investors to further investigate Walmart to ensure all market statistics is disseminated and is consistent with investors' estimations about Walmart upside potential. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Walmart's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Walmart's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
3 Months Beta |Analyze Walmart Demand Trend
Check current 90 days Walmart correlation with market (NYSE Composite)

Walmart Beta

Walmart standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

It is essential to understand the difference between upside risk (as represented by Walmart's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Walmart's daily returns or price. Since the actual investment returns on holding a position in walmart stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Walmart.

Using Walmart Put Option to Manage Risk

Put options written on Walmart grant holders of the option the right to sell a specified amount of Walmart at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Walmart Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Walmart's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Walmart will be realized, the loss incurred will be offset by the profits made with the option trade.

Walmart's PUT expiring on 2023-06-02

       Walmart Price At Expiration  

Current Walmart Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
2023-06-02 PUT at $135.0-0.00590.00323652023-06-020.0 - 0.010.01View
2023-06-02 PUT at $136.0-0.00640.00371102023-06-020.0 - 0.010.01View
2023-06-02 PUT at $137.0-0.00690.00431242023-06-020.0 - 0.010.01View
2023-06-02 PUT at $138.0-0.00750.00511342023-06-020.0 - 0.010.01View
2023-06-02 PUT at $139.0-0.01410.0096422023-06-020.0 - 0.010.02View
2023-06-02 PUT at $140.0-0.00910.00764592023-06-020.01 - 0.020.01View
2023-06-02 PUT at $141.0-0.01750.01386942023-06-020.01 - 0.020.02View
2023-06-02 PUT at $142.0-0.0270.02163082023-06-020.02 - 0.030.03View
2023-06-02 PUT at $143.0-0.03150.02925902023-06-020.03 - 0.040.03View
2023-06-02 PUT at $144.0-0.06120.05378142023-06-020.04 - 0.070.06View
2023-06-02 PUT at $145.0-0.10570.0939072023-06-020.08 - 0.10.1View
View All Walmart Options

Walmart Stock Volatility Analysis

Volatility refers to the frequency at which Walmart stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Walmart's price changes. Investors will then calculate the volatility of Walmart's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Walmart's volatility:

Historical Volatility

This type of stock volatility measures Walmart's fluctuations based on previous trends. It's commonly used to predict Walmart's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Walmart's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Walmart's to be redeemed at a future date.
The output start index for this execution was zero with a total number of output elements of sixty-one. Walmart Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Walmart Projected Return Density Against Market

Considering the 90-day investment horizon Walmart has a beta of 0.2532 . This entails as returns on the market go up, Walmart average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Walmart will be expected to be much smaller as well.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Walmart or Food & Staples Retailing sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Walmart's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Walmart stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has an alpha of 0.0713, implying that it can generate a 0.0713 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
Walmart's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how walmart stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Walmart Price Volatility?

Several factors can influence a stock's market volatility:


Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Walmart Stock Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Walmart or Food & Staples Retailing sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Walmart's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Walmart stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. Considering the 90-day investment horizon the coefficient of variation of Walmart is 784.0. The daily returns are distributed with a variance of 0.51 and standard deviation of 0.71. The mean deviation of Walmart is currently at 0.6. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.9
Alpha over NYSE Composite
Beta against NYSE Composite0.25
Overall volatility
Information ratio 0.15

Walmart Stock Return Volatility

Walmart historical daily return volatility represents how much of Walmart stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 0.7127% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.9143% volatility on return distribution over the 90 days horizon.
 Performance (%) 

About Walmart Volatility

Volatility is a rate at which the price of Walmart or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Walmart may increase or decrease. In other words, similar to Walmart's beta indicator, it measures the risk of Walmart and helps estimate the fluctuations that may happen in a short period of time. So if prices of Walmart fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Last ReportedProjected for 2023
Market Capitalization388 B375.8 B
Walmart's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Walmart Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Walmart's price varies over time.

3 ways to utilize Walmart's volatility to invest better

Higher Walmart's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Walmart stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Walmart stock volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Walmart investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Walmart's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of Walmart's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Walmart Investment Opportunity

NYSE Composite has a standard deviation of returns of 0.91 and is 1.28 times more volatile than Walmart. of all equities and portfolios are less risky than Walmart. Compared to the overall equity markets, volatility of historical daily returns of Walmart is lower than 6 () of all global equities and portfolios over the last 90 days. Use Walmart to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a normal upward fluctuation. Check odds of Walmart to be traded at $154.78 in 90 days.

Weak diversification

The correlation between Walmart and NYA is 0.32 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and NYA in the same portfolio, assuming nothing else is changed.

Walmart Additional Risk Indicators

The analysis of Walmart's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Walmart's investment and either accepting that risk or mitigating it. Along with some common measures of Walmart stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Walmart Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Walmart as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Walmart's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Walmart's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Walmart.
Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Walmart. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis. For more information on how to buy Walmart Stock please use our How to Invest in Walmart guide. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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When running Walmart's price analysis, check to measure Walmart's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Walmart is operating at the current time. Most of Walmart's value examination focuses on studying past and present price action to predict the probability of Walmart's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Walmart's price. Additionally, you may evaluate how the addition of Walmart to your portfolios can decrease your overall portfolio volatility.
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Is Walmart's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Walmart. If investors know Walmart will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Walmart listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
Dividend Share
Earnings Share
Revenue Per Share
Quarterly Revenue Growth
The market value of Walmart is measured differently than its book value, which is the value of Walmart that is recorded on the company's balance sheet. Investors also form their own opinion of Walmart's value that differs from its market value or its book value, called intrinsic value, which is Walmart's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Walmart's market value can be influenced by many factors that don't directly affect Walmart's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Walmart's value and its price as these two are different measures arrived at by different means. Investors typically determine if Walmart is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Walmart's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.