Correlation Between IShares Medical and Horizon Kinetics
Can any of the company-specific risk be diversified away by investing in both IShares Medical and Horizon Kinetics 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 Medical and Horizon Kinetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Medical Devices and Horizon Kinetics Medical, you can compare the effects of market volatilities on IShares Medical and Horizon Kinetics 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 Medical with a short position of Horizon Kinetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Medical and Horizon Kinetics.
Diversification Opportunities for IShares Medical and Horizon Kinetics
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and Horizon is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding iShares Medical Devices and Horizon Kinetics Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Kinetics Medical and IShares Medical 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 Medical Devices are associated (or correlated) with Horizon Kinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Kinetics Medical has no effect on the direction of IShares Medical i.e., IShares Medical and Horizon Kinetics go up and down completely randomly.
Pair Corralation between IShares Medical and Horizon Kinetics
Considering the 90-day investment horizon iShares Medical Devices is expected to generate 1.11 times more return on investment than Horizon Kinetics. However, IShares Medical is 1.11 times more volatile than Horizon Kinetics Medical. It trades about 0.03 of its potential returns per unit of risk. Horizon Kinetics Medical is currently generating about -0.01 per unit of risk. If you would invest 5,273 in iShares Medical Devices on August 29, 2024 and sell it today you would earn a total of 796.00 from holding iShares Medical Devices or generate 15.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.93% |
| Values | Daily Returns |
iShares Medical Devices vs. Horizon Kinetics Medical
Performance |
| Timeline |
| iShares Medical Devices |
| Horizon Kinetics Medical |
IShares Medical and Horizon Kinetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Medical and Horizon Kinetics
The main advantage of trading using opposite IShares Medical and Horizon Kinetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Medical position performs unexpectedly, Horizon Kinetics 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 Horizon Kinetics will offset losses from the drop in Horizon Kinetics' long position.| IShares Medical vs. iShares Healthcare Providers | IShares Medical vs. iShares Expanded Tech Software | IShares Medical vs. iShares Aerospace Defense | IShares Medical vs. iShares Pharmaceuticals ETF |
| Horizon Kinetics vs. Global X Clean | Horizon Kinetics vs. Global X Renewable | Horizon Kinetics vs. Global X Thematic | Horizon Kinetics vs. Global X AgTech |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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