Correlation Between IShares Global and IShares Jantzi
Can any of the company-specific risk be diversified away by investing in both IShares Global and IShares Jantzi 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 Global and IShares Jantzi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Global Monthly and iShares Jantzi Social, you can compare the effects of market volatilities on IShares Global and IShares Jantzi 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 Global with a short position of IShares Jantzi. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and IShares Jantzi.
Diversification Opportunities for IShares Global and IShares Jantzi
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and IShares is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Monthly and iShares Jantzi Social in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Jantzi Social and IShares 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 iShares Global Monthly are associated (or correlated) with IShares Jantzi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Jantzi Social has no effect on the direction of IShares Global i.e., IShares Global and IShares Jantzi go up and down completely randomly.
Pair Corralation between IShares Global and IShares Jantzi
Assuming the 90 days trading horizon IShares Global is expected to generate 1.02 times less return on investment than IShares Jantzi. But when comparing it to its historical volatility, iShares Global Monthly is 1.08 times less risky than IShares Jantzi. It trades about 0.14 of its potential returns per unit of risk. iShares Jantzi Social is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,168 in iShares Jantzi Social on August 25, 2024 and sell it today you would earn a total of 599.00 from holding iShares Jantzi Social or generate 18.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Global Monthly vs. iShares Jantzi Social
Performance |
| Timeline |
| iShares Global Monthly |
| iShares Jantzi Social |
IShares Global and IShares Jantzi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and IShares Jantzi
The main advantage of trading using opposite IShares Global and IShares Jantzi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global position performs unexpectedly, IShares Jantzi 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 Jantzi will offset losses from the drop in IShares Jantzi's long position.| IShares Global vs. iShares Global Infrastructure | IShares Global vs. iShares Global Real | IShares Global vs. iShares Dividend Growers | IShares Global vs. iShares 1 5 Year |
| IShares Jantzi vs. iShares SPTSX 60 | IShares Jantzi vs. iShares Core SP | IShares Jantzi vs. iShares SPTSX Composite | IShares Jantzi vs. iShares Core MSCI |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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