Correlation Between Walgreens Boots and ExcelFin Acquisition
Can any of the company-specific risk be diversified away by investing in both Walgreens Boots and ExcelFin Acquisition 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 ExcelFin Acquisition 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 ExcelFin Acquisition Corp, you can compare the effects of market volatilities on Walgreens Boots and ExcelFin Acquisition 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 ExcelFin Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walgreens Boots and ExcelFin Acquisition.
Diversification Opportunities for Walgreens Boots and ExcelFin Acquisition
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walgreens and ExcelFin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walgreens Boots Alliance and ExcelFin Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExcelFin Acquisition Corp 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 ExcelFin Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExcelFin Acquisition Corp has no effect on the direction of Walgreens Boots i.e., Walgreens Boots and ExcelFin Acquisition go up and down completely randomly.
Pair Corralation between Walgreens Boots and ExcelFin Acquisition
If you would invest (100.00) in ExcelFin Acquisition Corp on December 5, 2024 and sell it today you would earn a total of 100.00 from holding ExcelFin Acquisition Corp or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Walgreens Boots Alliance vs. ExcelFin Acquisition Corp
Performance |
Timeline |
Walgreens Boots Alliance |
ExcelFin Acquisition Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Walgreens Boots and ExcelFin Acquisition Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Walgreens Boots and ExcelFin Acquisition
The main advantage of trading using opposite Walgreens Boots and ExcelFin Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walgreens Boots position performs unexpectedly, ExcelFin Acquisition 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 ExcelFin Acquisition will offset losses from the drop in ExcelFin Acquisition'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 |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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