Correlation Between IShares Physical and Hiscox
Can any of the company-specific risk be diversified away by investing in both IShares Physical and Hiscox 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 Hiscox 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 Hiscox, you can compare the effects of market volatilities on IShares Physical and Hiscox 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 Hiscox. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Physical and Hiscox.
Diversification Opportunities for IShares Physical and Hiscox
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Hiscox is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding iShares Physical Silver and Hiscox in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hiscox 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 Hiscox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hiscox has no effect on the direction of IShares Physical i.e., IShares Physical and Hiscox go up and down completely randomly.
Pair Corralation between IShares Physical and Hiscox
Assuming the 90 days trading horizon iShares Physical Silver is expected to under-perform the Hiscox. In addition to that, IShares Physical is 1.29 times more volatile than Hiscox. It trades about -0.17 of its total potential returns per unit of risk. Hiscox is currently generating about 0.04 per unit of volatility. If you would invest 106,100 in Hiscox on September 4, 2024 and sell it today you would earn a total of 900.00 from holding Hiscox or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Physical Silver vs. Hiscox
Performance |
| Timeline |
| iShares Physical Silver |
| Hiscox |
IShares Physical and Hiscox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Physical and Hiscox
The main advantage of trading using opposite IShares Physical and Hiscox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Physical position performs unexpectedly, Hiscox 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 Hiscox will offset losses from the drop in Hiscox's long position.| IShares Physical vs. Invesco Physical Gold | IShares Physical vs. Amundi Physical Gold | IShares Physical vs. Bertrandt AG |
| Hiscox vs. Taylor Maritime Investments | Hiscox vs. MTI Wireless Edge | Hiscox vs. Fevertree Drinks Plc | Hiscox vs. Herald Investment Trust |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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