Correlation Between Walgreens Boots and Hainan HNA
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By analyzing existing cross correlation between Walgreens Boots Alliance and Hainan HNA Infrastructure, you can compare the effects of market volatilities on Walgreens Boots and Hainan HNA 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 Hainan HNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walgreens Boots and Hainan HNA.
Diversification Opportunities for Walgreens Boots and Hainan HNA
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walgreens and Hainan is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Walgreens Boots Alliance and Hainan HNA Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan HNA Infrastructure 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 Hainan HNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan HNA Infrastructure has no effect on the direction of Walgreens Boots i.e., Walgreens Boots and Hainan HNA go up and down completely randomly.
Pair Corralation between Walgreens Boots and Hainan HNA
Considering the 90-day investment horizon Walgreens Boots Alliance is expected to generate 1.83 times more return on investment than Hainan HNA. However, Walgreens Boots is 1.83 times more volatile than Hainan HNA Infrastructure. It trades about 0.16 of its potential returns per unit of risk. Hainan HNA Infrastructure is currently generating about 0.04 per unit of risk. If you would invest 830.00 in Walgreens Boots Alliance on September 22, 2024 and sell it today you would earn a total of 125.00 from holding Walgreens Boots Alliance or generate 15.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Walgreens Boots Alliance vs. Hainan HNA Infrastructure
Performance |
Timeline |
Walgreens Boots Alliance |
Hainan HNA Infrastructure |
Walgreens Boots and Hainan HNA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Walgreens Boots and Hainan HNA
The main advantage of trading using opposite Walgreens Boots and Hainan HNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walgreens Boots position performs unexpectedly, Hainan HNA 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 Hainan HNA will offset losses from the drop in Hainan HNA's long position.Walgreens Boots vs. SunLink Health Systems | Walgreens Boots vs. Kiaro Holdings Corp | Walgreens Boots vs. Leafly Holdings | Walgreens Boots vs. PetMed Express |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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