Correlation Between Walgreens Boots and Lagardere
Can any of the company-specific risk be diversified away by investing in both Walgreens Boots and Lagardere 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 Lagardere 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 Lagardere SA, you can compare the effects of market volatilities on Walgreens Boots and Lagardere 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 Lagardere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walgreens Boots and Lagardere.
Diversification Opportunities for Walgreens Boots and Lagardere
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walgreens and Lagardere is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walgreens Boots Alliance and Lagardere SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lagardere SA 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 Lagardere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lagardere SA has no effect on the direction of Walgreens Boots i.e., Walgreens Boots and Lagardere go up and down completely randomly.
Pair Corralation between Walgreens Boots and Lagardere
Considering the 90-day investment horizon Walgreens Boots Alliance is expected to under-perform the Lagardere. In addition to that, Walgreens Boots is 2.16 times more volatile than Lagardere SA. It trades about -0.05 of its total potential returns per unit of risk. Lagardere SA is currently generating about 0.01 per unit of volatility. If you would invest 2,225 in Lagardere SA on December 4, 2024 and sell it today you would lose (13.00) from holding Lagardere SA or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 49.7% |
| Values | Daily Returns |
Walgreens Boots Alliance vs. Lagardere SA
Performance |
| Timeline |
| Walgreens Boots Alliance |
| Lagardere SA |
Walgreens Boots and Lagardere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walgreens Boots and Lagardere
The main advantage of trading using opposite Walgreens Boots and Lagardere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walgreens Boots position performs unexpectedly, Lagardere 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 Lagardere will offset losses from the drop in Lagardere'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 |
| Lagardere vs. Alto Neuroscience, | Lagardere vs. Centessa Pharmaceuticals PLC | Lagardere vs. Paranovus Entertainment Technology | Lagardere vs. SNDL Inc |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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