Correlation Between IShares Digital and HAN GINS
Can any of the company-specific risk be diversified away by investing in both IShares Digital and HAN GINS 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 Digital and HAN GINS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Digital Entertainment and HAN GINS Tech Megatrend, you can compare the effects of market volatilities on IShares Digital and HAN GINS 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 Digital with a short position of HAN GINS. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Digital and HAN GINS.
Diversification Opportunities for IShares Digital and HAN GINS
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and HAN is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding iShares Digital Entertainment and HAN GINS Tech Megatrend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAN GINS Tech and IShares Digital 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 Digital Entertainment are associated (or correlated) with HAN GINS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAN GINS Tech has no effect on the direction of IShares Digital i.e., IShares Digital and HAN GINS go up and down completely randomly.
Pair Corralation between IShares Digital and HAN GINS
Assuming the 90 days trading horizon IShares Digital is expected to generate 2.64 times less return on investment than HAN GINS. But when comparing it to its historical volatility, iShares Digital Entertainment is 2.0 times less risky than HAN GINS. It trades about 0.11 of its potential returns per unit of risk. HAN GINS Tech Megatrend is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,378 in HAN GINS Tech Megatrend on September 24, 2024 and sell it today you would earn a total of 58.00 from holding HAN GINS Tech Megatrend or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Digital Entertainment vs. HAN GINS Tech Megatrend
Performance |
| Timeline |
| iShares Digital Ente |
| HAN GINS Tech |
IShares Digital and HAN GINS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Digital and HAN GINS
The main advantage of trading using opposite IShares Digital and HAN GINS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Digital position performs unexpectedly, HAN GINS 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 HAN GINS will offset losses from the drop in HAN GINS's long position.| IShares Digital vs. Lyxor UCITS Japan | IShares Digital vs. Lyxor UCITS Japan | IShares Digital vs. Lyxor UCITS Stoxx | IShares Digital vs. Amundi CAC 40 |
| HAN GINS vs. HAN GINS Indxx Healthcare | HAN GINS vs. Amundi Index Solutions | HAN GINS vs. Multi Units Luxembourg | HAN GINS vs. iShares Digital Entertainment |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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