Correlation Between BetaPro Canadian and IShares SP
Can any of the company-specific risk be diversified away by investing in both BetaPro Canadian and IShares SP 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 BetaPro Canadian and IShares SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BetaPro Canadian Gold and iShares SP Global, you can compare the effects of market volatilities on BetaPro Canadian and IShares SP 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 BetaPro Canadian with a short position of IShares SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro Canadian and IShares SP.
Diversification Opportunities for BetaPro Canadian and IShares SP
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BetaPro and IShares is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro Canadian Gold and iShares SP Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SP Global and BetaPro Canadian 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 BetaPro Canadian Gold are associated (or correlated) with IShares SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SP Global has no effect on the direction of BetaPro Canadian i.e., BetaPro Canadian and IShares SP go up and down completely randomly.
Pair Corralation between BetaPro Canadian and IShares SP
Assuming the 90 days trading horizon BetaPro Canadian Gold is expected to generate 3.6 times more return on investment than IShares SP. However, BetaPro Canadian is 3.6 times more volatile than iShares SP Global. It trades about 0.06 of its potential returns per unit of risk. iShares SP Global is currently generating about 0.06 per unit of risk. If you would invest 1,383 in BetaPro Canadian Gold on September 12, 2024 and sell it today you would earn a total of 1,082 from holding BetaPro Canadian Gold or generate 78.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
BetaPro Canadian Gold vs. iShares SP Global
Performance |
| Timeline |
| BetaPro Canadian Gold |
| iShares SP Global |
BetaPro Canadian and IShares SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro Canadian and IShares SP
The main advantage of trading using opposite BetaPro Canadian and IShares SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro Canadian position performs unexpectedly, IShares SP 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 SP will offset losses from the drop in IShares SP's long position.| BetaPro Canadian vs. BetaPro SP 500 | BetaPro Canadian vs. BetaPro NASDAQ 100 2x | BetaPro Canadian vs. BetaPro SP TSX | BetaPro Canadian vs. BetaPro SP 500 |
| IShares SP vs. iShares SP Global | IShares SP vs. iShares SPTSX Capped | IShares SP vs. iShares Global Healthcare | IShares SP vs. iShares Global Infrastructure |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |