Correlation Between IShares Global and CIMB SP
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By analyzing existing cross correlation between iShares Global AAA AA and CIMB SP Ethical, you can compare the effects of market volatilities on IShares Global and CIMB SP 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 Global with a short position of CIMB SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and CIMB SP.
Diversification Opportunities for IShares Global and CIMB SP
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IShares and CIMB is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global AAA AA and CIMB SP Ethical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMB SP Ethical and IShares Global 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 Global AAA AA are associated (or correlated) with CIMB SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMB SP Ethical has no effect on the direction of IShares Global i.e., IShares Global and CIMB SP go up and down completely randomly.
Pair Corralation between IShares Global and CIMB SP
Assuming the 90 days trading horizon IShares Global is expected to generate 8.08 times less return on investment than CIMB SP. But when comparing it to its historical volatility, iShares Global AAA AA is 3.31 times less risky than CIMB SP. It trades about 0.03 of its potential returns per unit of risk. CIMB SP Ethical is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,874 in CIMB SP Ethical on November 3, 2024 and sell it today you would earn a total of 595.00 from holding CIMB SP Ethical or generate 20.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
iShares Global AAA AA vs. CIMB SP Ethical
Performance |
| Timeline |
| iShares Global AAA |
| CIMB SP Ethical |
IShares Global and CIMB SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and CIMB SP
The main advantage of trading using opposite IShares Global and CIMB SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global position performs unexpectedly, CIMB SP 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 CIMB SP will offset losses from the drop in CIMB SP's long position.| IShares Global vs. iShares Govt Bond | IShares Global vs. iShares Smart City | IShares Global vs. iShares Broad High | IShares Global vs. iShares Emerging Markets |
| CIMB SP vs. iShares Govt Bond | CIMB SP vs. Amundi MSCI Europe | CIMB SP vs. iShares Global AAA AA | CIMB SP vs. iShares Smart City |
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 CEOs Directory module to screen CEOs from public companies around the world.
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