Correlation Between IShares Global and BNK BankingLtd
Can any of the company-specific risk be diversified away by investing in both IShares Global and BNK BankingLtd 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 Global and BNK BankingLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Global Healthcare and BNK Banking, you can compare the effects of market volatilities on IShares Global and BNK BankingLtd 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 BNK BankingLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and BNK BankingLtd.
Diversification Opportunities for IShares Global and BNK BankingLtd
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and BNK is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Healthcare and BNK Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNK BankingLtd 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 Healthcare are associated (or correlated) with BNK BankingLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNK BankingLtd has no effect on the direction of IShares Global i.e., IShares Global and BNK BankingLtd go up and down completely randomly.
Pair Corralation between IShares Global and BNK BankingLtd
Assuming the 90 days trading horizon iShares Global Healthcare is expected to generate 0.21 times more return on investment than BNK BankingLtd. However, iShares Global Healthcare is 4.74 times less risky than BNK BankingLtd. It trades about 0.07 of its potential returns per unit of risk. BNK Banking is currently generating about -0.01 per unit of risk. If you would invest 11,751 in iShares Global Healthcare on November 9, 2024 and sell it today you would earn a total of 2,929 from holding iShares Global Healthcare or generate 24.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Global Healthcare vs. BNK Banking
Performance |
| Timeline |
| iShares Global Healthcare |
| BNK BankingLtd |
IShares Global and BNK BankingLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and BNK BankingLtd
The main advantage of trading using opposite IShares Global and BNK BankingLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global position performs unexpectedly, BNK BankingLtd 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 BNK BankingLtd will offset losses from the drop in BNK BankingLtd's long position.| IShares Global vs. iShares MSCI Emerging | IShares Global vs. iShares Global Aggregate | IShares Global vs. iShares CoreSP MidCap | IShares Global vs. iShares SP 500 |
| BNK BankingLtd vs. Aneka Tambang Tbk | BNK BankingLtd vs. Macquarie Group | BNK BankingLtd vs. Commonwealth Bank | BNK BankingLtd vs. Commonwealth Bank of |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |