Correlation Between Walgreens Boots and Wintrust Financial
Can any of the company-specific risk be diversified away by investing in both Walgreens Boots and Wintrust Financial 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 Wintrust Financial 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 Wintrust Financial Corp, you can compare the effects of market volatilities on Walgreens Boots and Wintrust Financial 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 Wintrust Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walgreens Boots and Wintrust Financial.
Diversification Opportunities for Walgreens Boots and Wintrust Financial
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walgreens and Wintrust is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Walgreens Boots Alliance and Wintrust Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintrust Financial Corp 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 Wintrust Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintrust Financial Corp has no effect on the direction of Walgreens Boots i.e., Walgreens Boots and Wintrust Financial go up and down completely randomly.
Pair Corralation between Walgreens Boots and Wintrust Financial
Considering the 90-day investment horizon Walgreens Boots Alliance is expected to generate 15.1 times more return on investment than Wintrust Financial. However, Walgreens Boots is 15.1 times more volatile than Wintrust Financial Corp. It trades about 0.08 of its potential returns per unit of risk. Wintrust Financial Corp is currently generating about 0.09 per unit of risk. If you would invest 879.00 in Walgreens Boots Alliance on September 17, 2024 and sell it today you would earn a total of 160.00 from holding Walgreens Boots Alliance or generate 18.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Walgreens Boots Alliance vs. Wintrust Financial Corp
Performance |
Timeline |
Walgreens Boots Alliance |
Wintrust Financial Corp |
Walgreens Boots and Wintrust Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Walgreens Boots and Wintrust Financial
The main advantage of trading using opposite Walgreens Boots and Wintrust Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walgreens Boots position performs unexpectedly, Wintrust Financial 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 Wintrust Financial will offset losses from the drop in Wintrust Financial's long position.Walgreens Boots vs. SunLink Health Systems | Walgreens Boots vs. Kiaro Holdings Corp | Walgreens Boots vs. Leafly Holdings | Walgreens Boots vs. China Jo Jo Drugstores |
Wintrust Financial vs. Capital One Financial | Wintrust Financial vs. Capital One Financial | Wintrust Financial vs. Bank of America |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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