Correlation Between Walgreens Boots and Sinotrans
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By analyzing existing cross correlation between Walgreens Boots Alliance and Sinotrans Ltd Class, you can compare the effects of market volatilities on Walgreens Boots and Sinotrans 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 Sinotrans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walgreens Boots and Sinotrans.
Diversification Opportunities for Walgreens Boots and Sinotrans
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walgreens and Sinotrans is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Walgreens Boots Alliance and Sinotrans Ltd Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinotrans Class 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 Sinotrans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinotrans Class has no effect on the direction of Walgreens Boots i.e., Walgreens Boots and Sinotrans go up and down completely randomly.
Pair Corralation between Walgreens Boots and Sinotrans
Considering the 90-day investment horizon Walgreens Boots Alliance is expected to generate 4.73 times more return on investment than Sinotrans. However, Walgreens Boots is 4.73 times more volatile than Sinotrans Ltd Class. It trades about 0.04 of its potential returns per unit of risk. Sinotrans Ltd Class is currently generating about 0.13 per unit of risk. If you would invest 906.00 in Walgreens Boots Alliance on September 28, 2024 and sell it today you would earn a total of 13.00 from holding Walgreens Boots Alliance or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Walgreens Boots Alliance vs. Sinotrans Ltd Class
Performance |
| Timeline |
| Walgreens Boots Alliance |
| Sinotrans Class |
Walgreens Boots and Sinotrans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walgreens Boots and Sinotrans
The main advantage of trading using opposite Walgreens Boots and Sinotrans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walgreens Boots position performs unexpectedly, Sinotrans 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 Sinotrans will offset losses from the drop in Sinotrans' long position.| Walgreens Boots vs. Leafly Holdings | Walgreens Boots vs. WM Technology | Walgreens Boots vs. Revelation Biosciences | Walgreens Boots vs. AEye Inc |
| Sinotrans vs. Ming Yang Smart | Sinotrans vs. 159681 | Sinotrans vs. 159005 | Sinotrans vs. Loctek Ergonomic 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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