Correlation Between IShares Corp and HIAG Immobilien
Can any of the company-specific risk be diversified away by investing in both IShares Corp and HIAG Immobilien 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 IShares Corp and HIAG Immobilien into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Corp Bond and HIAG Immobilien Holding, you can compare the effects of market volatilities on IShares Corp and HIAG Immobilien 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 IShares Corp with a short position of HIAG Immobilien. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Corp and HIAG Immobilien.
Diversification Opportunities for IShares Corp and HIAG Immobilien
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and HIAG is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding iShares Corp Bond and HIAG Immobilien Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIAG Immobilien Holding and IShares Corp 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 iShares Corp Bond are associated (or correlated) with HIAG Immobilien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIAG Immobilien Holding has no effect on the direction of IShares Corp i.e., IShares Corp and HIAG Immobilien go up and down completely randomly.
Pair Corralation between IShares Corp and HIAG Immobilien
Assuming the 90 days trading horizon IShares Corp is expected to generate 63.17 times less return on investment than HIAG Immobilien. But when comparing it to its historical volatility, iShares Corp Bond is 4.41 times less risky than HIAG Immobilien. It trades about 0.01 of its potential returns per unit of risk. HIAG Immobilien Holding is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 8,860 in HIAG Immobilien Holding on December 1, 2024 and sell it today you would earn a total of 280.00 from holding HIAG Immobilien Holding or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
iShares Corp Bond vs. HIAG Immobilien Holding
Performance |
| Timeline |
| iShares Corp Bond |
| HIAG Immobilien Holding |
IShares Corp and HIAG Immobilien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Corp and HIAG Immobilien
The main advantage of trading using opposite IShares Corp and HIAG Immobilien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Corp position performs unexpectedly, HIAG Immobilien 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 HIAG Immobilien will offset losses from the drop in HIAG Immobilien's long position.| IShares Corp vs. UBSFund Solutions MSCI | IShares Corp vs. Vanguard SP 500 | IShares Corp vs. iShares VII PLC | IShares Corp vs. iShares Core SP |
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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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