Correlation Between Western Union and WALGREENS
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By analyzing existing cross correlation between Western Union Co and WALGREENS BOOTS ALLIANCE, you can compare the effects of market volatilities on Western Union and WALGREENS 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 Western Union with a short position of WALGREENS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Union and WALGREENS.
Diversification Opportunities for Western Union and WALGREENS
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Western and WALGREENS is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Western Union Co and WALGREENS BOOTS ALLIANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WALGREENS BOOTS ALLIANCE and Western Union 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 Western Union Co are associated (or correlated) with WALGREENS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WALGREENS BOOTS ALLIANCE has no effect on the direction of Western Union i.e., Western Union and WALGREENS go up and down completely randomly.
Pair Corralation between Western Union and WALGREENS
Allowing for the 90-day total investment horizon Western Union Co is expected to generate 2.13 times more return on investment than WALGREENS. However, Western Union is 2.13 times more volatile than WALGREENS BOOTS ALLIANCE. It trades about 0.11 of its potential returns per unit of risk. WALGREENS BOOTS ALLIANCE is currently generating about -0.11 per unit of risk. If you would invest 1,076 in Western Union Co on September 1, 2024 and sell it today you would earn a total of 25.00 from holding Western Union Co or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Union Co vs. WALGREENS BOOTS ALLIANCE
Performance |
| Timeline |
| Western Union |
| WALGREENS BOOTS ALLIANCE |
Western Union and WALGREENS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Union and WALGREENS
The main advantage of trading using opposite Western Union and WALGREENS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Union position performs unexpectedly, WALGREENS 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 WALGREENS will offset losses from the drop in WALGREENS's long position.| Western Union vs. Navient Corp | Western Union vs. Green Dot | Western Union vs. Orix Corp Ads | Western Union vs. FirstCash |
| WALGREENS vs. SunLink Health Systems | WALGREENS vs. Western Union Co | WALGREENS vs. Pintec Technology Holdings | WALGREENS vs. Kite Realty Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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