Correlation Between Walgreens Boots and SLIGRO FOOD
Can any of the company-specific risk be diversified away by investing in both Walgreens Boots and SLIGRO FOOD 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 SLIGRO FOOD 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 SLIGRO FOOD GROUP, you can compare the effects of market volatilities on Walgreens Boots and SLIGRO FOOD 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 SLIGRO FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walgreens Boots and SLIGRO FOOD.
Diversification Opportunities for Walgreens Boots and SLIGRO FOOD
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walgreens and SLIGRO is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Walgreens Boots Alliance and SLIGRO FOOD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SLIGRO FOOD GROUP 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 SLIGRO FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SLIGRO FOOD GROUP has no effect on the direction of Walgreens Boots i.e., Walgreens Boots and SLIGRO FOOD go up and down completely randomly.
Pair Corralation between Walgreens Boots and SLIGRO FOOD
Assuming the 90 days horizon Walgreens Boots Alliance is expected to under-perform the SLIGRO FOOD. In addition to that, Walgreens Boots is 2.13 times more volatile than SLIGRO FOOD GROUP. It trades about -0.07 of its total potential returns per unit of risk. SLIGRO FOOD GROUP is currently generating about -0.05 per unit of volatility. If you would invest 1,523 in SLIGRO FOOD GROUP on September 13, 2024 and sell it today you would lose (457.00) from holding SLIGRO FOOD GROUP or give up 30.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walgreens Boots Alliance vs. SLIGRO FOOD GROUP
Performance |
| Timeline |
| Walgreens Boots Alliance |
| SLIGRO FOOD GROUP |
Walgreens Boots and SLIGRO FOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walgreens Boots and SLIGRO FOOD
The main advantage of trading using opposite Walgreens Boots and SLIGRO FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walgreens Boots position performs unexpectedly, SLIGRO FOOD 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 SLIGRO FOOD will offset losses from the drop in SLIGRO FOOD's long position.| Walgreens Boots vs. DEVRY EDUCATION GRP | Walgreens Boots vs. CHINA EDUCATION GROUP | Walgreens Boots vs. Gaztransport Technigaz SA | Walgreens Boots vs. DeVry Education Group |
| SLIGRO FOOD vs. Apple Inc | SLIGRO FOOD vs. Apple Inc | SLIGRO FOOD vs. Apple Inc | SLIGRO FOOD vs. Apple Inc |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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