Correlation Between IShares Physical and CAP LEASE
Can any of the company-specific risk be diversified away by investing in both IShares Physical and CAP LEASE 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 Physical and CAP LEASE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Physical Silver and CAP LEASE AVIATION, you can compare the effects of market volatilities on IShares Physical and CAP LEASE 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 Physical with a short position of CAP LEASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Physical and CAP LEASE.
Diversification Opportunities for IShares Physical and CAP LEASE
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IShares and CAP is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding iShares Physical Silver and CAP LEASE AVIATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAP LEASE AVIATION and IShares Physical 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 Physical Silver are associated (or correlated) with CAP LEASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAP LEASE AVIATION has no effect on the direction of IShares Physical i.e., IShares Physical and CAP LEASE go up and down completely randomly.
Pair Corralation between IShares Physical and CAP LEASE
Assuming the 90 days trading horizon iShares Physical Silver is expected to generate 0.55 times more return on investment than CAP LEASE. However, iShares Physical Silver is 1.81 times less risky than CAP LEASE. It trades about 0.04 of its potential returns per unit of risk. CAP LEASE AVIATION is currently generating about -0.03 per unit of risk. If you would invest 2,289 in iShares Physical Silver on October 11, 2024 and sell it today you would earn a total of 588.00 from holding iShares Physical Silver or generate 25.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.98% |
| Values | Daily Returns |
iShares Physical Silver vs. CAP LEASE AVIATION
Performance |
| Timeline |
| iShares Physical Silver |
| CAP LEASE AVIATION |
IShares Physical and CAP LEASE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Physical and CAP LEASE
The main advantage of trading using opposite IShares Physical and CAP LEASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Physical position performs unexpectedly, CAP LEASE 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 CAP LEASE will offset losses from the drop in CAP LEASE's long position.| IShares Physical vs. BW Offshore | IShares Physical vs. Finnair Oyj | IShares Physical vs. Wizz Air Holdings | IShares Physical vs. Monks Investment Trust |
| CAP LEASE vs. Allianz Technology Trust | CAP LEASE vs. Lundin Mining Corp | CAP LEASE vs. Learning Technologies Group | CAP LEASE vs. Celebrus Technologies plc |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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