Correlation Between Walgreens Boots and Shanghai Laimu
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By analyzing existing cross correlation between Walgreens Boots Alliance and Shanghai Laimu Electronics, you can compare the effects of market volatilities on Walgreens Boots and Shanghai Laimu 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 Shanghai Laimu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walgreens Boots and Shanghai Laimu.
Diversification Opportunities for Walgreens Boots and Shanghai Laimu
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walgreens and Shanghai is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Walgreens Boots Alliance and Shanghai Laimu Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Laimu Elect 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 Shanghai Laimu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Laimu Elect has no effect on the direction of Walgreens Boots i.e., Walgreens Boots and Shanghai Laimu go up and down completely randomly.
Pair Corralation between Walgreens Boots and Shanghai Laimu
Considering the 90-day investment horizon Walgreens Boots Alliance is expected to generate 1.8 times more return on investment than Shanghai Laimu. However, Walgreens Boots is 1.8 times more volatile than Shanghai Laimu Electronics. It trades about 0.09 of its potential returns per unit of risk. Shanghai Laimu Electronics is currently generating about 0.04 per unit of risk. If you would invest 911.00 in Walgreens Boots Alliance on September 12, 2024 and sell it today you would earn a total of 73.00 from holding Walgreens Boots Alliance or generate 8.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Walgreens Boots Alliance vs. Shanghai Laimu Electronics
Performance |
| Timeline |
| Walgreens Boots Alliance |
| Shanghai Laimu Elect |
Walgreens Boots and Shanghai Laimu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walgreens Boots and Shanghai Laimu
The main advantage of trading using opposite Walgreens Boots and Shanghai Laimu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walgreens Boots position performs unexpectedly, Shanghai Laimu 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 Shanghai Laimu will offset losses from the drop in Shanghai Laimu'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 |
| Shanghai Laimu vs. Shandong Iron and | Shanghai Laimu vs. Yunnan Jianzhijia Health Chain | Shanghai Laimu vs. Sanbo Hospital Management | Shanghai Laimu vs. Sinosteel Engineering and |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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