Correlation Between Walgreens Boots and China Union
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By analyzing existing cross correlation between Walgreens Boots Alliance and China Union Holdings, you can compare the effects of market volatilities on Walgreens Boots and China Union 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 China Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walgreens Boots and China Union.
Diversification Opportunities for Walgreens Boots and China Union
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walgreens and China is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Walgreens Boots Alliance and China Union Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Union Holdings 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 China Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Union Holdings has no effect on the direction of Walgreens Boots i.e., Walgreens Boots and China Union go up and down completely randomly.
Pair Corralation between Walgreens Boots and China Union
Considering the 90-day investment horizon Walgreens Boots Alliance is expected to under-perform the China Union. In addition to that, Walgreens Boots is 1.34 times more volatile than China Union Holdings. It trades about -0.05 of its total potential returns per unit of risk. China Union Holdings is currently generating about 0.0 per unit of volatility. If you would invest 402.00 in China Union Holdings on October 15, 2024 and sell it today you would lose (30.00) from holding China Union Holdings or give up 7.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.57% |
| Values | Daily Returns |
Walgreens Boots Alliance vs. China Union Holdings
Performance |
| Timeline |
| Walgreens Boots Alliance |
| China Union Holdings |
Walgreens Boots and China Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walgreens Boots and China Union
The main advantage of trading using opposite Walgreens Boots and China Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walgreens Boots position performs unexpectedly, China Union 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 China Union will offset losses from the drop in China Union's long position.| Walgreens Boots vs. PetMed Express | Walgreens Boots vs. 111 Inc | Walgreens Boots vs. China Jo Jo Drugstores | Walgreens Boots vs. High Tide |
| China Union vs. Hua Xia Bank | China Union vs. Postal Savings Bank | China Union vs. Unisplendour Corp | China Union vs. Bomesc Offshore Engineering |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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