Correlation Between Walgreens Boots and Shengtak New
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By analyzing existing cross correlation between Walgreens Boots Alliance and Shengtak New Material, you can compare the effects of market volatilities on Walgreens Boots and Shengtak New 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 Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walgreens Boots and Shengtak New.
Diversification Opportunities for Walgreens Boots and Shengtak New
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walgreens and Shengtak is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Walgreens Boots Alliance and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material 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 Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of Walgreens Boots i.e., Walgreens Boots and Shengtak New go up and down completely randomly.
Pair Corralation between Walgreens Boots and Shengtak New
Considering the 90-day investment horizon Walgreens Boots Alliance is expected to generate 3.34 times more return on investment than Shengtak New. However, Walgreens Boots is 3.34 times more volatile than Shengtak New Material. It trades about 0.18 of its potential returns per unit of risk. Shengtak New Material is currently generating about -0.05 per unit of risk. If you would invest 1,018 in Walgreens Boots Alliance on October 17, 2024 and sell it today you would earn a total of 235.00 from holding Walgreens Boots Alliance or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Walgreens Boots Alliance vs. Shengtak New Material
Performance |
| Timeline |
| Walgreens Boots Alliance |
| Shengtak New Material |
Walgreens Boots and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walgreens Boots and Shengtak New
The main advantage of trading using opposite Walgreens Boots and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walgreens Boots position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New'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 |
| Shengtak New vs. Wonders Information | Shengtak New vs. Shenzhen SDG Information | Shengtak New vs. Thinkon Semiconductor Jinzhou | Shengtak New vs. Sharetronic Data Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
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