Correlation Between Pekin Life and WALGREENS
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By analyzing existing cross correlation between Pekin Life Insurance and WALGREENS BOOTS ALLIANCE, you can compare the effects of market volatilities on Pekin Life and WALGREENS 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 Pekin Life with a short position of WALGREENS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pekin Life and WALGREENS.
Diversification Opportunities for Pekin Life and WALGREENS
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pekin and WALGREENS is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Pekin Life Insurance and WALGREENS BOOTS ALLIANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WALGREENS BOOTS ALLIANCE and Pekin Life 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 Pekin Life Insurance are associated (or correlated) with WALGREENS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WALGREENS BOOTS ALLIANCE has no effect on the direction of Pekin Life i.e., Pekin Life and WALGREENS go up and down completely randomly.
Pair Corralation between Pekin Life and WALGREENS
Given the investment horizon of 90 days Pekin Life Insurance is expected to generate 0.27 times more return on investment than WALGREENS. However, Pekin Life Insurance is 3.65 times less risky than WALGREENS. It trades about 0.01 of its potential returns per unit of risk. WALGREENS BOOTS ALLIANCE is currently generating about -0.04 per unit of risk. If you would invest 1,150 in Pekin Life Insurance on August 31, 2024 and sell it today you would earn a total of 25.00 from holding Pekin Life Insurance or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 74.8% |
| Values | Daily Returns |
Pekin Life Insurance vs. WALGREENS BOOTS ALLIANCE
Performance |
| Timeline |
| Pekin Life Insurance |
| WALGREENS BOOTS ALLIANCE |
Pekin Life and WALGREENS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pekin Life and WALGREENS
The main advantage of trading using opposite Pekin Life and WALGREENS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pekin Life position performs unexpectedly, WALGREENS 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 WALGREENS will offset losses from the drop in WALGREENS's long position.| Pekin Life vs. HUMANA INC | Pekin Life vs. SCOR PK | Pekin Life vs. Aquagold International | Pekin Life vs. Thrivent High Yield |
| WALGREENS vs. AEP TEX INC | WALGREENS vs. US BANK NATIONAL | WALGREENS vs. American Express | WALGREENS vs. Chevron Corp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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