Correlation Between Walgreens Boots and Amundi FTSE
Can any of the company-specific risk be diversified away by investing in both Walgreens Boots and Amundi FTSE 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 Amundi FTSE 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 Amundi FTSE EPRANAREIT, you can compare the effects of market volatilities on Walgreens Boots and Amundi FTSE 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 Amundi FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walgreens Boots and Amundi FTSE.
Diversification Opportunities for Walgreens Boots and Amundi FTSE
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walgreens and Amundi is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Walgreens Boots Alliance and Amundi FTSE EPRANAREIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi FTSE EPRANAREIT 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 Amundi FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi FTSE EPRANAREIT has no effect on the direction of Walgreens Boots i.e., Walgreens Boots and Amundi FTSE go up and down completely randomly.
Pair Corralation between Walgreens Boots and Amundi FTSE
Considering the 90-day investment horizon Walgreens Boots Alliance is expected to under-perform the Amundi FTSE. But the stock apears to be less risky and, when comparing its historical volatility, Walgreens Boots Alliance is 2.68 times less risky than Amundi FTSE. The stock trades about -0.07 of its potential returns per unit of risk. The Amundi FTSE EPRANAREIT is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,636 in Amundi FTSE EPRANAREIT on September 14, 2024 and sell it today you would earn a total of 2,727 from holding Amundi FTSE EPRANAREIT or generate 166.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.28% |
| Values | Daily Returns |
Walgreens Boots Alliance vs. Amundi FTSE EPRANAREIT
Performance |
| Timeline |
| Walgreens Boots Alliance |
| Amundi FTSE EPRANAREIT |
Walgreens Boots and Amundi FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walgreens Boots and Amundi FTSE
The main advantage of trading using opposite Walgreens Boots and Amundi FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walgreens Boots position performs unexpectedly, Amundi FTSE 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 Amundi FTSE will offset losses from the drop in Amundi FTSE'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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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