Correlation Between BetaPro SPTSX and IShares Jantzi
Can any of the company-specific risk be diversified away by investing in both BetaPro SPTSX and IShares Jantzi 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 SPTSX and IShares Jantzi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BetaPro SPTSX 60 and iShares Jantzi Social, you can compare the effects of market volatilities on BetaPro SPTSX and IShares Jantzi 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 SPTSX with a short position of IShares Jantzi. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro SPTSX and IShares Jantzi.
Diversification Opportunities for BetaPro SPTSX and IShares Jantzi
-0.99 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BetaPro and IShares is -0.99. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro SPTSX 60 and iShares Jantzi Social in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Jantzi Social and BetaPro SPTSX 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 SPTSX 60 are associated (or correlated) with IShares Jantzi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Jantzi Social has no effect on the direction of BetaPro SPTSX i.e., BetaPro SPTSX and IShares Jantzi go up and down completely randomly.
Pair Corralation between BetaPro SPTSX and IShares Jantzi
Assuming the 90 days trading horizon BetaPro SPTSX 60 is expected to under-perform the IShares Jantzi. In addition to that, BetaPro SPTSX is 1.78 times more volatile than iShares Jantzi Social. It trades about -0.14 of its total potential returns per unit of risk. iShares Jantzi Social is currently generating about 0.13 per unit of volatility. If you would invest 2,966 in iShares Jantzi Social on September 1, 2024 and sell it today you would earn a total of 840.00 from holding iShares Jantzi Social or generate 28.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.63% |
| Values | Daily Returns |
BetaPro SPTSX 60 vs. iShares Jantzi Social
Performance |
| Timeline |
| BetaPro SPTSX 60 |
| iShares Jantzi Social |
BetaPro SPTSX and IShares Jantzi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro SPTSX and IShares Jantzi
The main advantage of trading using opposite BetaPro SPTSX and IShares Jantzi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro SPTSX position performs unexpectedly, IShares Jantzi 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 Jantzi will offset losses from the drop in IShares Jantzi's long position.| BetaPro SPTSX vs. BetaPro Gold Bullion | BetaPro SPTSX vs. BetaPro NASDAQ 100 2x | BetaPro SPTSX vs. BetaPro SP TSX | BetaPro SPTSX vs. BetaPro SP TSX |
| IShares Jantzi vs. iShares Convertible Bond | IShares Jantzi vs. iShares SP Mid Cap | IShares Jantzi vs. iShares Edge MSCI | IShares Jantzi vs. iShares Flexible Monthly |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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