Correlation Between IREIT MarketVector and Hoya Capital
Can any of the company-specific risk be diversified away by investing in both IREIT MarketVector and Hoya Capital 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 IREIT MarketVector and Hoya Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iREIT MarketVector and Hoya Capital High, you can compare the effects of market volatilities on IREIT MarketVector and Hoya Capital 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 IREIT MarketVector with a short position of Hoya Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of IREIT MarketVector and Hoya Capital.
Diversification Opportunities for IREIT MarketVector and Hoya Capital
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IREIT and Hoya is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding iREIT MarketVector and Hoya Capital High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoya Capital High and IREIT MarketVector 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 iREIT MarketVector are associated (or correlated) with Hoya Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoya Capital High has no effect on the direction of IREIT MarketVector i.e., IREIT MarketVector and Hoya Capital go up and down completely randomly.
Pair Corralation between IREIT MarketVector and Hoya Capital
Given the investment horizon of 90 days iREIT MarketVector is expected to under-perform the Hoya Capital. But the etf apears to be less risky and, when comparing its historical volatility, iREIT MarketVector is 1.1 times less risky than Hoya Capital. The etf trades about -0.07 of its potential returns per unit of risk. The Hoya Capital High is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,019 in Hoya Capital High on November 28, 2024 and sell it today you would earn a total of 8.00 from holding Hoya Capital High or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iREIT MarketVector vs. Hoya Capital High
Performance |
| Timeline |
| iREIT MarketVector |
| Hoya Capital High |
IREIT MarketVector and Hoya Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IREIT MarketVector and Hoya Capital
The main advantage of trading using opposite IREIT MarketVector and Hoya Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IREIT MarketVector position performs unexpectedly, Hoya Capital 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 Hoya Capital will offset losses from the drop in Hoya Capital's long position.| IREIT MarketVector vs. Ultimus Managers Trust | IREIT MarketVector vs. American Beacon Select | IREIT MarketVector vs. First Trust Indxx | IREIT MarketVector vs. Direxion Daily Regional |
| Hoya Capital vs. InfraCap Equity Income | Hoya Capital vs. Virtus InfraCap Preferred | Hoya Capital vs. The Hoya Capital | Hoya Capital vs. Qurate Retail |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |