Correlation Between IShares Global and Credit Clear
Can any of the company-specific risk be diversified away by investing in both IShares Global and Credit Clear 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 Credit Clear 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 Credit Clear, you can compare the effects of market volatilities on IShares Global and Credit Clear 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 Credit Clear. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and Credit Clear.
Diversification Opportunities for IShares Global and Credit Clear
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and Credit is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Healthcare and Credit Clear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Clear 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 Credit Clear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Clear has no effect on the direction of IShares Global i.e., IShares Global and Credit Clear go up and down completely randomly.
Pair Corralation between IShares Global and Credit Clear
Assuming the 90 days trading horizon iShares Global Healthcare is expected to under-perform the Credit Clear. But the etf apears to be less risky and, when comparing its historical volatility, iShares Global Healthcare is 3.49 times less risky than Credit Clear. The etf trades about -0.15 of its potential returns per unit of risk. The Credit Clear is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 31.00 in Credit Clear on August 26, 2024 and sell it today you would earn a total of 6.00 from holding Credit Clear or generate 19.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Global Healthcare vs. Credit Clear
Performance |
| Timeline |
| iShares Global Healthcare |
| Credit Clear |
IShares Global and Credit Clear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and Credit Clear
The main advantage of trading using opposite IShares Global and Credit Clear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global position performs unexpectedly, Credit Clear 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 Credit Clear will offset losses from the drop in Credit Clear's long position.| IShares Global vs. BetaShares Global Government | IShares Global vs. BetaShares Geared Australian | IShares Global vs. Global X Semiconductor | IShares Global vs. iShares UBS Government |
| Credit Clear vs. Westpac Banking | Credit Clear vs. Ecofibre | Credit Clear vs. iShares Global Healthcare | Credit Clear vs. Adriatic Metals 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stocks Directory Find actively traded stocks across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Transaction History View history of all your transactions and understand their impact on performance |