Correlation Between IShares European and Hubersuhner
Can any of the company-specific risk be diversified away by investing in both IShares European and Hubersuhner 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 European and Hubersuhner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares European Property and Hubersuhner AG, you can compare the effects of market volatilities on IShares European and Hubersuhner 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 European with a short position of Hubersuhner. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares European and Hubersuhner.
Diversification Opportunities for IShares European and Hubersuhner
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and Hubersuhner is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding iShares European Property and Hubersuhner AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubersuhner AG and IShares European 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 European Property are associated (or correlated) with Hubersuhner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubersuhner AG has no effect on the direction of IShares European i.e., IShares European and Hubersuhner go up and down completely randomly.
Pair Corralation between IShares European and Hubersuhner
Assuming the 90 days trading horizon iShares European Property is expected to generate 1.37 times more return on investment than Hubersuhner. However, IShares European is 1.37 times more volatile than Hubersuhner AG. It trades about 0.2 of its potential returns per unit of risk. Hubersuhner AG is currently generating about 0.22 per unit of risk. If you would invest 2,624 in iShares European Property on October 20, 2024 and sell it today you would earn a total of 109.00 from holding iShares European Property or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares European Property vs. Hubersuhner AG
Performance |
| Timeline |
| iShares European Property |
| Hubersuhner AG |
IShares European and Hubersuhner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares European and Hubersuhner
The main advantage of trading using opposite IShares European and Hubersuhner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares European position performs unexpectedly, Hubersuhner 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 Hubersuhner will offset losses from the drop in Hubersuhner's long position.| IShares European vs. UBSFund Solutions MSCI | IShares European vs. Vanguard SP 500 | IShares European vs. iShares Core SP | IShares European vs. Lyxor Japan UCITS |
| Hubersuhner vs. Carlo Gavazzi Holding | Hubersuhner vs. Feintool International Holding | Hubersuhner vs. Graubuendner Kantonalbank | Hubersuhner vs. Also Holding AG |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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