Correlation Between IShares Global and Hansen Technologies
Can any of the company-specific risk be diversified away by investing in both IShares Global and Hansen Technologies 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 Hansen Technologies 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 Hansen Technologies, you can compare the effects of market volatilities on IShares Global and Hansen Technologies 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 Hansen Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and Hansen Technologies.
Diversification Opportunities for IShares Global and Hansen Technologies
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and Hansen is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Healthcare and Hansen Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansen Technologies 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 Hansen Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansen Technologies has no effect on the direction of IShares Global i.e., IShares Global and Hansen Technologies go up and down completely randomly.
Pair Corralation between IShares Global and Hansen Technologies
Assuming the 90 days trading horizon iShares Global Healthcare is expected to under-perform the Hansen Technologies. But the etf apears to be less risky and, when comparing its historical volatility, iShares Global Healthcare is 1.63 times less risky than Hansen Technologies. The etf trades about -0.03 of its potential returns per unit of risk. The Hansen Technologies is currently generating about 0.55 of returns per unit of risk over similar time horizon. If you would invest 490.00 in Hansen Technologies on September 3, 2024 and sell it today you would earn a total of 91.00 from holding Hansen Technologies or generate 18.57% 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. Hansen Technologies
Performance |
| Timeline |
| iShares Global Healthcare |
| Hansen Technologies |
IShares Global and Hansen Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and Hansen Technologies
The main advantage of trading using opposite IShares Global and Hansen Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global position performs unexpectedly, Hansen Technologies 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 Hansen Technologies will offset losses from the drop in Hansen Technologies' 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 |
| Hansen Technologies vs. Commonwealth Bank | Hansen Technologies vs. Commonwealth Bank of | Hansen Technologies vs. Champion Iron | Hansen Technologies vs. iShares Global Healthcare |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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