Correlation Between Victorias Secret and WALGREENS
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By analyzing existing cross correlation between Victorias Secret Co and WALGREENS BOOTS ALLIANCE, you can compare the effects of market volatilities on Victorias Secret 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 Victorias Secret with a short position of WALGREENS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victorias Secret and WALGREENS.
Diversification Opportunities for Victorias Secret and WALGREENS
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Victorias and WALGREENS is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Victorias Secret Co 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 Victorias Secret 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 Victorias Secret Co 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 Victorias Secret i.e., Victorias Secret and WALGREENS go up and down completely randomly.
Pair Corralation between Victorias Secret and WALGREENS
Given the investment horizon of 90 days Victorias Secret Co is expected to generate 1.03 times more return on investment than WALGREENS. However, Victorias Secret is 1.03 times more volatile than WALGREENS BOOTS ALLIANCE. It trades about 0.48 of its potential returns per unit of risk. WALGREENS BOOTS ALLIANCE is currently generating about 0.18 per unit of risk. If you would invest 2,898 in Victorias Secret Co on August 31, 2024 and sell it today you would earn a total of 901.00 from holding Victorias Secret Co or generate 31.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Victorias Secret Co vs. WALGREENS BOOTS ALLIANCE
Performance |
| Timeline |
| Victorias Secret |
| WALGREENS BOOTS ALLIANCE |
Victorias Secret and WALGREENS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victorias Secret and WALGREENS
The main advantage of trading using opposite Victorias Secret and WALGREENS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victorias Secret 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.| Victorias Secret vs. Ross Stores | Victorias Secret vs. Childrens Place | Victorias Secret vs. Buckle Inc | Victorias Secret vs. Guess Inc |
| WALGREENS vs. Victorias Secret Co | WALGREENS vs. Figs Inc | WALGREENS vs. Ross Stores | WALGREENS vs. Boot Barn Holdings |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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