Correlation Between Walgreens Boots and Sichuan Furong
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By analyzing existing cross correlation between Walgreens Boots Alliance and Sichuan Furong Technology, you can compare the effects of market volatilities on Walgreens Boots and Sichuan Furong 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 Sichuan Furong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walgreens Boots and Sichuan Furong.
Diversification Opportunities for Walgreens Boots and Sichuan Furong
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walgreens and Sichuan is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Walgreens Boots Alliance and Sichuan Furong Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Furong Technology 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 Sichuan Furong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Furong Technology has no effect on the direction of Walgreens Boots i.e., Walgreens Boots and Sichuan Furong go up and down completely randomly.
Pair Corralation between Walgreens Boots and Sichuan Furong
Considering the 90-day investment horizon Walgreens Boots Alliance is expected to under-perform the Sichuan Furong. But the stock apears to be less risky and, when comparing its historical volatility, Walgreens Boots Alliance is 15.02 times less risky than Sichuan Furong. The stock trades about -0.05 of its potential returns per unit of risk. The Sichuan Furong Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,202 in Sichuan Furong Technology on October 15, 2024 and sell it today you would lose (70.00) from holding Sichuan Furong Technology or give up 5.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.57% |
| Values | Daily Returns |
Walgreens Boots Alliance vs. Sichuan Furong Technology
Performance |
| Timeline |
| Walgreens Boots Alliance |
| Sichuan Furong Technology |
Walgreens Boots and Sichuan Furong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walgreens Boots and Sichuan Furong
The main advantage of trading using opposite Walgreens Boots and Sichuan Furong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walgreens Boots position performs unexpectedly, Sichuan Furong 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 Sichuan Furong will offset losses from the drop in Sichuan Furong'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 |
| Sichuan Furong vs. Zhejiang Yongjin Metal | Sichuan Furong vs. Cultural Investment Holdings | Sichuan Furong vs. Zhongrun Resources Investment | Sichuan Furong vs. Heilongjiang Transport Development |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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