Correlation Between IShares Dow and Supermarket Income
Can any of the company-specific risk be diversified away by investing in both IShares Dow and Supermarket Income 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 Dow and Supermarket Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Dow Jones and Supermarket Income REIT, you can compare the effects of market volatilities on IShares Dow and Supermarket Income 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 Dow with a short position of Supermarket Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Dow and Supermarket Income.
Diversification Opportunities for IShares Dow and Supermarket Income
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and Supermarket is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding iShares Dow Jones and Supermarket Income REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supermarket Income REIT and IShares Dow 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 Dow Jones are associated (or correlated) with Supermarket Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supermarket Income REIT has no effect on the direction of IShares Dow i.e., IShares Dow and Supermarket Income go up and down completely randomly.
Pair Corralation between IShares Dow and Supermarket Income
Assuming the 90 days trading horizon iShares Dow Jones is expected to generate 0.52 times more return on investment than Supermarket Income. However, iShares Dow Jones is 1.93 times less risky than Supermarket Income. It trades about 0.19 of its potential returns per unit of risk. Supermarket Income REIT is currently generating about -0.17 per unit of risk. If you would invest 7,366 in iShares Dow Jones on October 25, 2024 and sell it today you would earn a total of 208.00 from holding iShares Dow Jones or generate 2.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Dow Jones vs. Supermarket Income REIT
Performance |
| Timeline |
| iShares Dow Jones |
| Supermarket Income REIT |
IShares Dow and Supermarket Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Dow and Supermarket Income
The main advantage of trading using opposite IShares Dow and Supermarket Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Dow position performs unexpectedly, Supermarket Income 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 Supermarket Income will offset losses from the drop in Supermarket Income's long position.| IShares Dow vs. iShares MSCI Japan | IShares Dow vs. iShares JP Morgan | IShares Dow vs. iShares MSCI Europe | IShares Dow vs. iShares Nasdaq Biotechnology |
| Supermarket Income vs. Hammerson PLC | Supermarket Income vs. Workspace Group PLC | Supermarket Income vs. Coor Service Management | Supermarket Income vs. iShares Dow Jones |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Correlations Find global opportunities by holding instruments from different markets |