Correlation Between Walgreens Boots and Jiangxi Lianchuang
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By analyzing existing cross correlation between Walgreens Boots Alliance and Jiangxi Lianchuang Opto electronic, you can compare the effects of market volatilities on Walgreens Boots and Jiangxi Lianchuang 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 Jiangxi Lianchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walgreens Boots and Jiangxi Lianchuang.
Diversification Opportunities for Walgreens Boots and Jiangxi Lianchuang
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walgreens and Jiangxi is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Walgreens Boots Alliance and Jiangxi Lianchuang Opto electr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Lianchuang Opto 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 Jiangxi Lianchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Lianchuang Opto has no effect on the direction of Walgreens Boots i.e., Walgreens Boots and Jiangxi Lianchuang go up and down completely randomly.
Pair Corralation between Walgreens Boots and Jiangxi Lianchuang
Considering the 90-day investment horizon Walgreens Boots Alliance is expected to under-perform the Jiangxi Lianchuang. But the stock apears to be less risky and, when comparing its historical volatility, Walgreens Boots Alliance is 1.04 times less risky than Jiangxi Lianchuang. The stock trades about -0.06 of its potential returns per unit of risk. The Jiangxi Lianchuang Opto electronic is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,903 in Jiangxi Lianchuang Opto electronic on September 19, 2024 and sell it today you would earn a total of 1,537 from holding Jiangxi Lianchuang Opto electronic or generate 52.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.03% |
| Values | Daily Returns |
Walgreens Boots Alliance vs. Jiangxi Lianchuang Opto electr
Performance |
| Timeline |
| Walgreens Boots Alliance |
| Jiangxi Lianchuang Opto |
Walgreens Boots and Jiangxi Lianchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walgreens Boots and Jiangxi Lianchuang
The main advantage of trading using opposite Walgreens Boots and Jiangxi Lianchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walgreens Boots position performs unexpectedly, Jiangxi Lianchuang 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 Jiangxi Lianchuang will offset losses from the drop in Jiangxi Lianchuang's long position.| Walgreens Boots vs. SunLink Health Systems | Walgreens Boots vs. Kiaro Holdings Corp | Walgreens Boots vs. Leafly Holdings | Walgreens Boots vs. PetMed Express |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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