Correlation Between IShares Global and Cooper Metals
Can any of the company-specific risk be diversified away by investing in both IShares Global and Cooper Metals 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 Cooper Metals 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 Cooper Metals, you can compare the effects of market volatilities on IShares Global and Cooper Metals 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 Cooper Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and Cooper Metals.
Diversification Opportunities for IShares Global and Cooper Metals
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and Cooper is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Healthcare and Cooper Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cooper Metals 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 Cooper Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cooper Metals has no effect on the direction of IShares Global i.e., IShares Global and Cooper Metals go up and down completely randomly.
Pair Corralation between IShares Global and Cooper Metals
Assuming the 90 days trading horizon iShares Global Healthcare is expected to generate 0.14 times more return on investment than Cooper Metals. However, iShares Global Healthcare is 7.28 times less risky than Cooper Metals. It trades about 0.05 of its potential returns per unit of risk. Cooper Metals is currently generating about -0.09 per unit of risk. If you would invest 13,409 in iShares Global Healthcare on September 3, 2024 and sell it today you would earn a total of 651.00 from holding iShares Global Healthcare or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Global Healthcare vs. Cooper Metals
Performance |
| Timeline |
| iShares Global Healthcare |
| Cooper Metals |
IShares Global and Cooper Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and Cooper Metals
The main advantage of trading using opposite IShares Global and Cooper Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global position performs unexpectedly, Cooper Metals 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 Cooper Metals will offset losses from the drop in Cooper Metals' 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 |
| Cooper Metals vs. Richmond Vanadium Technology | Cooper Metals vs. Metro Mining | Cooper Metals vs. Ras Technology Holdings | Cooper Metals vs. Dug Technology |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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 | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |