Correlation Between Walgreens Boots and Maj Invest
Can any of the company-specific risk be diversified away by investing in both Walgreens Boots and Maj Invest 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 Walgreens Boots and Maj Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walgreens Boots Alliance and Maj Invest , you can compare the effects of market volatilities on Walgreens Boots and Maj Invest 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 Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walgreens Boots and Maj Invest.
Diversification Opportunities for Walgreens Boots and Maj Invest
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walgreens and Maj is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Walgreens Boots Alliance and Maj Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest 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 Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest has no effect on the direction of Walgreens Boots i.e., Walgreens Boots and Maj Invest go up and down completely randomly.
Pair Corralation between Walgreens Boots and Maj Invest
Considering the 90-day investment horizon Walgreens Boots Alliance is expected to under-perform the Maj Invest. In addition to that, Walgreens Boots is 16.37 times more volatile than Maj Invest . It trades about -0.03 of its total potential returns per unit of risk. Maj Invest is currently generating about 0.12 per unit of volatility. If you would invest 9,080 in Maj Invest on December 3, 2024 and sell it today you would earn a total of 835.00 from holding Maj Invest or generate 9.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 99.7% |
Values | Daily Returns |
Walgreens Boots Alliance vs. Maj Invest
Performance |
Timeline |
Walgreens Boots Alliance |
Maj Invest |
Walgreens Boots and Maj Invest Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Walgreens Boots and Maj Invest
The main advantage of trading using opposite Walgreens Boots and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walgreens Boots position performs unexpectedly, Maj Invest 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 Maj Invest will offset losses from the drop in Maj Invest'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 |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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