Correlation Between LG Longer and IShares Edge
Can any of the company-specific risk be diversified away by investing in both LG Longer and IShares Edge 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 LG Longer and IShares Edge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LG Longer Dated and IShares Edge MSCI, you can compare the effects of market volatilities on LG Longer and IShares Edge 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 LG Longer with a short position of IShares Edge. Check out your portfolio center. Please also check ongoing floating volatility patterns of LG Longer and IShares Edge.
Diversification Opportunities for LG Longer and IShares Edge
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between COMF and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LG Longer Dated and IShares Edge MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares Edge MSCI and LG Longer 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 LG Longer Dated are associated (or correlated) with IShares Edge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares Edge MSCI has no effect on the direction of LG Longer i.e., LG Longer and IShares Edge go up and down completely randomly.
Pair Corralation between LG Longer and IShares Edge
If you would invest 2,261 in LG Longer Dated on September 2, 2024 and sell it today you would earn a total of 4.00 from holding LG Longer Dated or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
LG Longer Dated vs. IShares Edge MSCI
Performance |
| Timeline |
| LG Longer Dated |
| IShares Edge MSCI |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LG Longer and IShares Edge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LG Longer and IShares Edge
The main advantage of trading using opposite LG Longer and IShares Edge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LG Longer position performs unexpectedly, IShares Edge 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 Edge will offset losses from the drop in IShares Edge's long position.| LG Longer vs. iShares MSCI Japan | LG Longer vs. Amundi EUR High | LG Longer vs. iShares JP Morgan | LG Longer vs. Xtrackers MSCI |
| IShares Edge vs. iShares MSCI Japan | IShares Edge vs. iShares JP Morgan | IShares Edge vs. iShares MSCI Europe | IShares Edge vs. iShares Nasdaq Biotechnology |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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