Correlation Between Baselode Energy and IShares Canadian
Can any of the company-specific risk be diversified away by investing in both Baselode Energy and IShares Canadian 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 Baselode Energy and IShares Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baselode Energy Corp and iShares Canadian HYBrid, you can compare the effects of market volatilities on Baselode Energy and IShares Canadian 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 Baselode Energy with a short position of IShares Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baselode Energy and IShares Canadian.
Diversification Opportunities for Baselode Energy and IShares Canadian
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baselode and IShares is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Baselode Energy Corp and iShares Canadian HYBrid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Canadian HYBrid and Baselode Energy 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 Baselode Energy Corp are associated (or correlated) with IShares Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Canadian HYBrid has no effect on the direction of Baselode Energy i.e., Baselode Energy and IShares Canadian go up and down completely randomly.
Pair Corralation between Baselode Energy and IShares Canadian
Assuming the 90 days trading horizon Baselode Energy Corp is expected to under-perform the IShares Canadian. In addition to that, Baselode Energy is 12.92 times more volatile than iShares Canadian HYBrid. It trades about -0.04 of its total potential returns per unit of risk. iShares Canadian HYBrid is currently generating about 0.07 per unit of volatility. If you would invest 1,716 in iShares Canadian HYBrid on August 29, 2024 and sell it today you would earn a total of 258.00 from holding iShares Canadian HYBrid or generate 15.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baselode Energy Corp vs. iShares Canadian HYBrid
Performance |
| Timeline |
| Baselode Energy Corp |
| iShares Canadian HYBrid |
Baselode Energy and IShares Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baselode Energy and IShares Canadian
The main advantage of trading using opposite Baselode Energy and IShares Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baselode Energy position performs unexpectedly, IShares Canadian 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 Canadian will offset losses from the drop in IShares Canadian's long position.| Baselode Energy vs. Canadian Natural Resources | Baselode Energy vs. Suncor Energy | Baselode Energy vs. iShares Canadian HYBrid | Baselode Energy vs. Altagas Cum Red |
| IShares Canadian vs. iShares IG Corporate | IShares Canadian vs. iShares High Yield | IShares Canadian vs. iShares Floating Rate | IShares Canadian vs. iShares JP Morgan |
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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