Correlation Between FlexShares STOXX and IQ Candriam
Can any of the company-specific risk be diversified away by investing in both FlexShares STOXX and IQ Candriam 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 FlexShares STOXX and IQ Candriam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FlexShares STOXX ESG and IQ Candriam ESG, you can compare the effects of market volatilities on FlexShares STOXX and IQ Candriam 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 FlexShares STOXX with a short position of IQ Candriam. Check out your portfolio center. Please also check ongoing floating volatility patterns of FlexShares STOXX and IQ Candriam.
Diversification Opportunities for FlexShares STOXX and IQ Candriam
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between FlexShares and IQSI is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding FlexShares STOXX ESG and IQ Candriam ESG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQ Candriam ESG and FlexShares STOXX 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 FlexShares STOXX ESG are associated (or correlated) with IQ Candriam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQ Candriam ESG has no effect on the direction of FlexShares STOXX i.e., FlexShares STOXX and IQ Candriam go up and down completely randomly.
Pair Corralation between FlexShares STOXX and IQ Candriam
Considering the 90-day investment horizon FlexShares STOXX ESG is expected to generate 1.2 times more return on investment than IQ Candriam. However, FlexShares STOXX is 1.2 times more volatile than IQ Candriam ESG. It trades about 0.11 of its potential returns per unit of risk. IQ Candriam ESG is currently generating about 0.11 per unit of risk. If you would invest 13,878 in FlexShares STOXX ESG on October 21, 2024 and sell it today you would earn a total of 215.00 from holding FlexShares STOXX ESG or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FlexShares STOXX ESG vs. IQ Candriam ESG
Performance |
| Timeline |
| FlexShares STOXX ESG |
| IQ Candriam ESG |
FlexShares STOXX and IQ Candriam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FlexShares STOXX and IQ Candriam
The main advantage of trading using opposite FlexShares STOXX and IQ Candriam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FlexShares STOXX position performs unexpectedly, IQ Candriam 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 IQ Candriam will offset losses from the drop in IQ Candriam's long position.| FlexShares STOXX vs. Vanguard Total Stock | FlexShares STOXX vs. SPDR SP 500 | FlexShares STOXX vs. iShares Core SP | FlexShares STOXX vs. Vanguard Dividend Appreciation |
| IQ Candriam vs. Invesco PureBeta MSCI | IQ Candriam vs. Aquagold International | IQ Candriam vs. Morningstar Unconstrained Allocation | IQ Candriam vs. Thrivent High Yield |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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