Correlation Between Walgreens Boots and China Greatwall
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By analyzing existing cross correlation between Walgreens Boots Alliance and China Greatwall Computer, you can compare the effects of market volatilities on Walgreens Boots and China Greatwall 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 Walgreens Boots with a short position of China Greatwall. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walgreens Boots and China Greatwall.
Diversification Opportunities for Walgreens Boots and China Greatwall
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walgreens and China is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Walgreens Boots Alliance and China Greatwall Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Greatwall Computer and Walgreens Boots 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 Walgreens Boots Alliance are associated (or correlated) with China Greatwall. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Greatwall Computer has no effect on the direction of Walgreens Boots i.e., Walgreens Boots and China Greatwall go up and down completely randomly.
Pair Corralation between Walgreens Boots and China Greatwall
Considering the 90-day investment horizon Walgreens Boots Alliance is expected to generate 1.42 times more return on investment than China Greatwall. However, Walgreens Boots is 1.42 times more volatile than China Greatwall Computer. It trades about 0.15 of its potential returns per unit of risk. China Greatwall Computer is currently generating about 0.01 per unit of risk. If you would invest 997.00 in Walgreens Boots Alliance on December 10, 2024 and sell it today you would earn a total of 131.00 from holding Walgreens Boots Alliance or generate 13.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Walgreens Boots Alliance vs. China Greatwall Computer
Performance |
Timeline |
Walgreens Boots Alliance |
China Greatwall Computer |
Walgreens Boots and China Greatwall Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Walgreens Boots and China Greatwall
The main advantage of trading using opposite Walgreens Boots and China Greatwall positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walgreens Boots position performs unexpectedly, China Greatwall 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 China Greatwall will offset losses from the drop in China Greatwall's long position.Walgreens Boots vs. PetMed Express | Walgreens Boots vs. 111 Inc | Walgreens Boots vs. China Jo Jo Drugstores | Walgreens Boots vs. High Tide |
China Greatwall vs. Xian International Medical | China Greatwall vs. Anhui Tongguan Copper | China Greatwall vs. Guangzhou Restaurants Group | China Greatwall vs. Chongqing Shunbo Aluminum |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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