Correlation Between Walgreens Boots and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both Walgreens Boots and Calamos ETF at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Walgreens Boots and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walgreens Boots Alliance and Calamos ETF Trust, you can compare the effects of market volatilities on Walgreens Boots and Calamos ETF 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 Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walgreens Boots and Calamos ETF.
Diversification Opportunities for Walgreens Boots and Calamos ETF
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walgreens and Calamos is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Walgreens Boots Alliance and Calamos ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos ETF Trust 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 Calamos ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos ETF Trust has no effect on the direction of Walgreens Boots i.e., Walgreens Boots and Calamos ETF go up and down completely randomly.
Pair Corralation between Walgreens Boots and Calamos ETF
Considering the 90-day investment horizon Walgreens Boots Alliance is expected to generate 24.31 times more return on investment than Calamos ETF. However, Walgreens Boots is 24.31 times more volatile than Calamos ETF Trust. It trades about 0.13 of its potential returns per unit of risk. Calamos ETF Trust is currently generating about -0.09 per unit of risk. If you would invest 856.00 in Walgreens Boots Alliance on October 7, 2024 and sell it today you would earn a total of 94.00 from holding Walgreens Boots Alliance or generate 10.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walgreens Boots Alliance vs. Calamos ETF Trust
Performance |
| Timeline |
| Walgreens Boots Alliance |
| Calamos ETF Trust |
Walgreens Boots and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walgreens Boots and Calamos ETF
The main advantage of trading using opposite Walgreens Boots and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walgreens Boots position performs unexpectedly, Calamos ETF 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 Calamos ETF will offset losses from the drop in Calamos ETF'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 |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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