Correlation Between 21Shares Polkadot and IShares Asia
Can any of the company-specific risk be diversified away by investing in both 21Shares Polkadot and IShares Asia 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 21Shares Polkadot and IShares Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 21Shares Polkadot ETP and iShares Asia Property, you can compare the effects of market volatilities on 21Shares Polkadot and IShares Asia 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 21Shares Polkadot with a short position of IShares Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of 21Shares Polkadot and IShares Asia.
Diversification Opportunities for 21Shares Polkadot and IShares Asia
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 21Shares and IShares is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding 21Shares Polkadot ETP and iShares Asia Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Asia Property and 21Shares Polkadot 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 21Shares Polkadot ETP are associated (or correlated) with IShares Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Asia Property has no effect on the direction of 21Shares Polkadot i.e., 21Shares Polkadot and IShares Asia go up and down completely randomly.
Pair Corralation between 21Shares Polkadot and IShares Asia
Assuming the 90 days trading horizon 21Shares Polkadot ETP is expected to generate 6.75 times more return on investment than IShares Asia. However, 21Shares Polkadot is 6.75 times more volatile than iShares Asia Property. It trades about 0.05 of its potential returns per unit of risk. iShares Asia Property is currently generating about -0.02 per unit of risk. If you would invest 349.00 in 21Shares Polkadot ETP on September 14, 2024 and sell it today you would earn a total of 117.00 from holding 21Shares Polkadot ETP or generate 33.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
21Shares Polkadot ETP vs. iShares Asia Property
Performance |
| Timeline |
| 21Shares Polkadot ETP |
| iShares Asia Property |
21Shares Polkadot and IShares Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 21Shares Polkadot and IShares Asia
The main advantage of trading using opposite 21Shares Polkadot and IShares Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 21Shares Polkadot position performs unexpectedly, IShares Asia 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 Asia will offset losses from the drop in IShares Asia's long position.| 21Shares Polkadot vs. 21Shares Polygon ETP | 21Shares Polkadot vs. 21Shares Ethereum Core | 21Shares Polkadot vs. 21Shares Tezos staking | 21Shares Polkadot vs. 21Shares Bitcoin ETP |
| IShares Asia vs. iShares Corp Bond | IShares Asia vs. iShares Emerging Asia | IShares Asia vs. iShares MSCI Global | IShares Asia vs. iShares VII PLC |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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