Correlation Between IShares Global and Bank of Queensland
Can any of the company-specific risk be diversified away by investing in both IShares Global and Bank of Queensland 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 Bank of Queensland 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 Bank of Queensland, you can compare the effects of market volatilities on IShares Global and Bank of Queensland 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 Bank of Queensland. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and Bank of Queensland.
Diversification Opportunities for IShares Global and Bank of Queensland
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Bank is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Healthcare and Bank of Queensland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Queensland 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 Bank of Queensland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Queensland has no effect on the direction of IShares Global i.e., IShares Global and Bank of Queensland go up and down completely randomly.
Pair Corralation between IShares Global and Bank of Queensland
If you would invest 14,069 in iShares Global Healthcare on September 3, 2024 and sell it today you would lose (9.00) from holding iShares Global Healthcare or give up 0.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Global Healthcare vs. Bank of Queensland
Performance |
| Timeline |
| iShares Global Healthcare |
| Bank of Queensland |
IShares Global and Bank of Queensland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and Bank of Queensland
The main advantage of trading using opposite IShares Global and Bank of Queensland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global position performs unexpectedly, Bank of Queensland 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 Bank of Queensland will offset losses from the drop in Bank of Queensland'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 |
| Bank of Queensland vs. Champion Iron | Bank of Queensland vs. iShares Global Healthcare | Bank of Queensland vs. Ridley | Bank of Queensland vs. Peel Mining |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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