Correlation Between Harvest Global and IShares Canadian
Can any of the company-specific risk be diversified away by investing in both Harvest Global 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 Harvest Global and IShares Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harvest Global REIT and iShares Canadian Universe, you can compare the effects of market volatilities on Harvest Global 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 Harvest Global with a short position of IShares Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvest Global and IShares Canadian.
Diversification Opportunities for Harvest Global and IShares Canadian
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harvest and IShares is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Harvest Global REIT and iShares Canadian Universe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Canadian Universe and Harvest 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 Harvest Global REIT 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 Universe has no effect on the direction of Harvest Global i.e., Harvest Global and IShares Canadian go up and down completely randomly.
Pair Corralation between Harvest Global and IShares Canadian
Assuming the 90 days trading horizon Harvest Global REIT is expected to generate 2.42 times more return on investment than IShares Canadian. However, Harvest Global is 2.42 times more volatile than iShares Canadian Universe. It trades about 0.06 of its potential returns per unit of risk. iShares Canadian Universe is currently generating about 0.08 per unit of risk. If you would invest 553.00 in Harvest Global REIT on September 4, 2024 and sell it today you would earn a total of 76.00 from holding Harvest Global REIT or generate 13.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harvest Global REIT vs. iShares Canadian Universe
Performance |
| Timeline |
| Harvest Global REIT |
| iShares Canadian Universe |
Harvest Global and IShares Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harvest Global and IShares Canadian
The main advantage of trading using opposite Harvest Global and IShares Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvest Global 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.| Harvest Global vs. Harvest Equal Weight | Harvest Global vs. Harvest Brand Leaders | Harvest Global vs. Energy Leaders Plus | Harvest Global vs. Harvest Tech Achievers |
| IShares Canadian vs. BMO Short Corporate | IShares Canadian vs. BMO High Yield | IShares Canadian vs. iShares Core Canadian | IShares Canadian vs. Harvest Global REIT |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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