Correlation Between Eurocastle Investment and IShares Core
Can any of the company-specific risk be diversified away by investing in both Eurocastle Investment and IShares Core 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 Eurocastle Investment and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eurocastle Investment and iShares Core MSCI, you can compare the effects of market volatilities on Eurocastle Investment and IShares Core 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 Eurocastle Investment with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurocastle Investment and IShares Core.
Diversification Opportunities for Eurocastle Investment and IShares Core
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eurocastle and IShares is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Eurocastle Investment and iShares Core MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core MSCI and Eurocastle Investment 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 Eurocastle Investment are associated (or correlated) with IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core MSCI has no effect on the direction of Eurocastle Investment i.e., Eurocastle Investment and IShares Core go up and down completely randomly.
Pair Corralation between Eurocastle Investment and IShares Core
Assuming the 90 days trading horizon Eurocastle Investment is expected to under-perform the IShares Core. In addition to that, Eurocastle Investment is 6.86 times more volatile than iShares Core MSCI. It trades about -0.44 of its total potential returns per unit of risk. iShares Core MSCI is currently generating about 0.05 per unit of volatility. If you would invest 3,253 in iShares Core MSCI on September 1, 2024 and sell it today you would earn a total of 26.00 from holding iShares Core MSCI or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 40.91% |
| Values | Daily Returns |
Eurocastle Investment vs. iShares Core MSCI
Performance |
| Timeline |
| Eurocastle Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares Core MSCI |
Eurocastle Investment and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurocastle Investment and IShares Core
The main advantage of trading using opposite Eurocastle Investment and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurocastle Investment position performs unexpectedly, IShares Core 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 Core will offset losses from the drop in IShares Core's long position.| Eurocastle Investment vs. Tetragon Financial Group | Eurocastle Investment vs. Ctac NV | Eurocastle Investment vs. iShares SP 500 | Eurocastle Investment vs. Hydratec Industries NV |
| IShares Core vs. BlackRock ESG Multi Asset | IShares Core vs. Pershing Square Holdings | IShares Core vs. ASML Holding NV | IShares Core vs. Koninklijke Philips NV |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |