Correlation Between Walgreens Boots and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both Walgreens Boots and JIAHUA STORES 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 JIAHUA STORES 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 JIAHUA STORES, you can compare the effects of market volatilities on Walgreens Boots and JIAHUA STORES 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 JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walgreens Boots and JIAHUA STORES.
Diversification Opportunities for Walgreens Boots and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walgreens and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walgreens Boots Alliance and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES 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 JIAHUA STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIAHUA STORES has no effect on the direction of Walgreens Boots i.e., Walgreens Boots and JIAHUA STORES go up and down completely randomly.
Pair Corralation between Walgreens Boots and JIAHUA STORES
If you would invest 834.00 in Walgreens Boots Alliance on September 5, 2024 and sell it today you would earn a total of 6.00 from holding Walgreens Boots Alliance or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Walgreens Boots Alliance vs. JIAHUA STORES
Performance |
| Timeline |
| Walgreens Boots Alliance |
| JIAHUA STORES |
Walgreens Boots and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walgreens Boots and JIAHUA STORES
The main advantage of trading using opposite Walgreens Boots and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walgreens Boots position performs unexpectedly, JIAHUA STORES 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 JIAHUA STORES will offset losses from the drop in JIAHUA STORES's long position.| Walgreens Boots vs. APPLIED MATERIALS | Walgreens Boots vs. Sumitomo Rubber Industries | Walgreens Boots vs. Compagnie Plastic Omnium | Walgreens Boots vs. CEOTRONICS |
| JIAHUA STORES vs. TOTAL GABON | JIAHUA STORES vs. Walgreens Boots Alliance | JIAHUA STORES vs. Peak Resources Limited |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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