Correlation Between WALGREENS and American Express
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By analyzing existing cross correlation between WALGREENS BOOTS ALLIANCE and American Express, you can compare the effects of market volatilities on WALGREENS and American Express 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 with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of WALGREENS and American Express.
Diversification Opportunities for WALGREENS and American Express
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WALGREENS and American is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding WALGREENS BOOTS ALLIANCE and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and WALGREENS 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 American Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Express has no effect on the direction of WALGREENS i.e., WALGREENS and American Express go up and down completely randomly.
Pair Corralation between WALGREENS and American Express
Assuming the 90 days trading horizon WALGREENS BOOTS ALLIANCE is expected to under-perform the American Express. But the bond apears to be less risky and, when comparing its historical volatility, WALGREENS BOOTS ALLIANCE is 1.84 times less risky than American Express. The bond trades about -0.01 of its potential returns per unit of risk. The American Express is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 27,019 in American Express on September 3, 2024 and sell it today you would earn a total of 3,207 from holding American Express or generate 11.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
WALGREENS BOOTS ALLIANCE vs. American Express
Performance |
| Timeline |
| WALGREENS BOOTS ALLIANCE |
| American Express |
WALGREENS and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WALGREENS and American Express
The main advantage of trading using opposite WALGREENS and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WALGREENS position performs unexpectedly, American Express 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 American Express will offset losses from the drop in American Express' long position.| WALGREENS vs. Cadence Design Systems | WALGREENS vs. Molson Coors Brewing | WALGREENS vs. Boston Beer | WALGREENS vs. Willamette Valley Vineyards |
| American Express vs. Highway Holdings Limited | American Express vs. QCR Holdings | American Express vs. Partner Communications | American Express vs. Acumen Pharmaceuticals |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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