Correlation Between Century Global and IShares Canadian
Can any of the company-specific risk be diversified away by investing in both Century Global and IShares Canadian 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 Century Global and IShares Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Century Global Commodities and iShares Canadian HYBrid, you can compare the effects of market volatilities on Century Global 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 Century Global with a short position of IShares Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Century Global and IShares Canadian.
Diversification Opportunities for Century Global and IShares Canadian
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Century and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Century Global Commodities 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 Century Global 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 Century Global Commodities 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 Century Global i.e., Century Global and IShares Canadian go up and down completely randomly.
Pair Corralation between Century Global and IShares Canadian
Assuming the 90 days trading horizon Century Global Commodities is expected to generate 22.75 times more return on investment than IShares Canadian. However, Century Global is 22.75 times more volatile than iShares Canadian HYBrid. It trades about 0.02 of its potential returns per unit of risk. iShares Canadian HYBrid is currently generating about 0.17 per unit of risk. If you would invest 4.00 in Century Global Commodities on December 2, 2024 and sell it today you would lose (1.00) from holding Century Global Commodities or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Century Global Commodities vs. iShares Canadian HYBrid
Performance |
| Timeline |
| Century Global Commo |
| iShares Canadian HYBrid |
Century Global and IShares Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Century Global and IShares Canadian
The main advantage of trading using opposite Century Global and IShares Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Century Global 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.| Century Global vs. Grosvenor Resource Corp | Century Global vs. Loncor Resources | Century Global vs. Quartz Mountain Resources | Century Global vs. ProAm Explorations Corp |
| IShares Canadian vs. iShares IG Corporate | IShares Canadian vs. iShares High Yield | IShares Canadian vs. iShares Floating Rate | IShares Canadian vs. iShares JP Morgan |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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