Correlation Between Walgreens Boots and BANCO
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By analyzing existing cross correlation between Walgreens Boots Alliance and BANCO SANTANDER SA, you can compare the effects of market volatilities on Walgreens Boots and BANCO 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 BANCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walgreens Boots and BANCO.
Diversification Opportunities for Walgreens Boots and BANCO
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walgreens and BANCO is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Walgreens Boots Alliance and BANCO SANTANDER SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANCO SANTANDER 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 BANCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANCO SANTANDER SA has no effect on the direction of Walgreens Boots i.e., Walgreens Boots and BANCO go up and down completely randomly.
Pair Corralation between Walgreens Boots and BANCO
Considering the 90-day investment horizon Walgreens Boots Alliance is expected to under-perform the BANCO. In addition to that, Walgreens Boots is 3.08 times more volatile than BANCO SANTANDER SA. It trades about -0.07 of its total potential returns per unit of risk. BANCO SANTANDER SA is currently generating about 0.01 per unit of volatility. If you would invest 8,911 in BANCO SANTANDER SA on September 12, 2024 and sell it today you would earn a total of 211.00 from holding BANCO SANTANDER SA or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.57% |
| Values | Daily Returns |
Walgreens Boots Alliance vs. BANCO SANTANDER SA
Performance |
| Timeline |
| Walgreens Boots Alliance |
| BANCO SANTANDER SA |
Walgreens Boots and BANCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walgreens Boots and BANCO
The main advantage of trading using opposite Walgreens Boots and BANCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walgreens Boots position performs unexpectedly, BANCO 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 BANCO will offset losses from the drop in BANCO'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 |
| BANCO vs. KLA Tencor | BANCO vs. Mid Atlantic Home Health | BANCO vs. Valens | BANCO vs. Bassett Furniture Industries |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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