Correlation Between Mawer Equity and IShares Canadian
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By analyzing existing cross correlation between Mawer Equity A and iShares Canadian HYBrid, you can compare the effects of market volatilities on Mawer Equity and IShares Canadian 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 Mawer Equity with a short position of IShares Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mawer Equity and IShares Canadian.
Diversification Opportunities for Mawer Equity and IShares Canadian
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mawer and IShares is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mawer Equity A and iShares Canadian HYBrid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Canadian HYBrid and Mawer Equity 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 Mawer Equity A are associated (or correlated) with IShares Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Canadian HYBrid has no effect on the direction of Mawer Equity i.e., Mawer Equity and IShares Canadian go up and down completely randomly.
Pair Corralation between Mawer Equity and IShares Canadian
Assuming the 90 days trading horizon Mawer Equity A is expected to generate 2.26 times more return on investment than IShares Canadian. However, Mawer Equity is 2.26 times more volatile than iShares Canadian HYBrid. It trades about 0.17 of its potential returns per unit of risk. iShares Canadian HYBrid is currently generating about 0.18 per unit of risk. If you would invest 9,089 in Mawer Equity A on September 1, 2024 and sell it today you would earn a total of 1,300 from holding Mawer Equity A or generate 14.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.92% |
| Values | Daily Returns |
Mawer Equity A vs. iShares Canadian HYBrid
Performance |
| Timeline |
| Mawer Equity A |
| iShares Canadian HYBrid |
Mawer Equity and IShares Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mawer Equity and IShares Canadian
The main advantage of trading using opposite Mawer Equity and IShares Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mawer Equity position performs unexpectedly, IShares Canadian 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 IShares Canadian will offset losses from the drop in IShares Canadian's long position.| Mawer Equity vs. BMO Aggregate Bond | Mawer Equity vs. iShares Canadian HYBrid | Mawer Equity vs. Brompton European Dividend | Mawer Equity vs. Solar Alliance Energy |
| IShares Canadian vs. Global X Active | IShares Canadian vs. Brompton Flaherty Crumrine | IShares Canadian vs. CIBC Core Fixed | IShares Canadian vs. BMO Aggregate Bond |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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