Correlation Between IShares Trust and Sendas Distribuidora
Can any of the company-specific risk be diversified away by investing in both IShares Trust and Sendas Distribuidora 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 IShares Trust and Sendas Distribuidora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Trust and Sendas Distribuidora SA, you can compare the effects of market volatilities on IShares Trust and Sendas Distribuidora 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 IShares Trust with a short position of Sendas Distribuidora. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Trust and Sendas Distribuidora.
Diversification Opportunities for IShares Trust and Sendas Distribuidora
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Sendas is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and Sendas Distribuidora SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sendas Distribuidora and IShares Trust 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 iShares Trust are associated (or correlated) with Sendas Distribuidora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sendas Distribuidora has no effect on the direction of IShares Trust i.e., IShares Trust and Sendas Distribuidora go up and down completely randomly.
Pair Corralation between IShares Trust and Sendas Distribuidora
Assuming the 90 days trading horizon iShares Trust is expected to under-perform the Sendas Distribuidora. But the etf apears to be less risky and, when comparing its historical volatility, iShares Trust is 1.57 times less risky than Sendas Distribuidora. The etf trades about -0.18 of its potential returns per unit of risk. The Sendas Distribuidora SA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 531.00 in Sendas Distribuidora SA on October 16, 2024 and sell it today you would earn a total of 21.00 from holding Sendas Distribuidora SA or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Trust vs. Sendas Distribuidora SA
Performance |
| Timeline |
| iShares Trust |
| Sendas Distribuidora |
IShares Trust and Sendas Distribuidora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Trust and Sendas Distribuidora
The main advantage of trading using opposite IShares Trust and Sendas Distribuidora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Trust position performs unexpectedly, Sendas Distribuidora 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 Sendas Distribuidora will offset losses from the drop in Sendas Distribuidora's long position.| IShares Trust vs. iShares BMFBovespa Small | IShares Trust vs. iShares Trust | IShares Trust vs. iShares Trust | IShares Trust vs. iShares iShares |
| Sendas Distribuidora vs. The Kroger Co | Sendas Distribuidora vs. BTG Pactual Logstica | Sendas Distribuidora vs. Plano Plano Desenvolvimento | Sendas Distribuidora vs. Gen Digital |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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