Correlation Between Jade Leader and IShares Canadian
Can any of the company-specific risk be diversified away by investing in both Jade Leader and IShares Canadian 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 Jade Leader and IShares Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jade Leader Corp and iShares Canadian HYBrid, you can compare the effects of market volatilities on Jade Leader and IShares Canadian 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 Jade Leader with a short position of IShares Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jade Leader and IShares Canadian.
Diversification Opportunities for Jade Leader and IShares Canadian
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jade and IShares is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Jade Leader Corp and iShares Canadian HYBrid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Canadian HYBrid and Jade Leader 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 Jade Leader Corp are associated (or correlated) with IShares Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Canadian HYBrid has no effect on the direction of Jade Leader i.e., Jade Leader and IShares Canadian go up and down completely randomly.
Pair Corralation between Jade Leader and IShares Canadian
Assuming the 90 days trading horizon Jade Leader Corp is expected to generate 15.55 times more return on investment than IShares Canadian. However, Jade Leader is 15.55 times more volatile than iShares Canadian HYBrid. It trades about 0.05 of its potential returns per unit of risk. iShares Canadian HYBrid is currently generating about 0.07 per unit of risk. If you would invest 2.50 in Jade Leader Corp on September 12, 2024 and sell it today you would lose (1.00) from holding Jade Leader Corp or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jade Leader Corp vs. iShares Canadian HYBrid
Performance |
| Timeline |
| Jade Leader Corp |
| iShares Canadian HYBrid |
Jade Leader and IShares Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jade Leader and IShares Canadian
The main advantage of trading using opposite Jade Leader and IShares Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jade Leader position performs unexpectedly, IShares Canadian 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 IShares Canadian will offset losses from the drop in IShares Canadian's long position.| Jade Leader vs. Ressources Minieres Radisson | Jade Leader vs. Galantas Gold Corp | Jade Leader vs. Red Pine Exploration | Jade Leader vs. Kore Mining |
| IShares Canadian vs. iShares IG Corporate | IShares Canadian vs. iShares High Yield | IShares Canadian vs. iShares Floating Rate | IShares Canadian vs. iShares JP Morgan |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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