Correlation Between Monks Investment and IShares Physical
Can any of the company-specific risk be diversified away by investing in both Monks Investment and IShares Physical 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 Monks Investment and IShares Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monks Investment Trust and iShares Physical Silver, you can compare the effects of market volatilities on Monks Investment and IShares Physical 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 Monks Investment with a short position of IShares Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monks Investment and IShares Physical.
Diversification Opportunities for Monks Investment and IShares Physical
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Monks and IShares is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Monks Investment Trust and iShares Physical Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Physical Silver and Monks Investment 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 Monks Investment Trust are associated (or correlated) with IShares Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Physical Silver has no effect on the direction of Monks Investment i.e., Monks Investment and IShares Physical go up and down completely randomly.
Pair Corralation between Monks Investment and IShares Physical
Assuming the 90 days trading horizon Monks Investment Trust is expected to generate 0.68 times more return on investment than IShares Physical. However, Monks Investment Trust is 1.46 times less risky than IShares Physical. It trades about 0.34 of its potential returns per unit of risk. iShares Physical Silver is currently generating about 0.12 per unit of risk. If you would invest 125,400 in Monks Investment Trust on October 26, 2024 and sell it today you would earn a total of 7,200 from holding Monks Investment Trust or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monks Investment Trust vs. iShares Physical Silver
Performance |
| Timeline |
| Monks Investment Trust |
| iShares Physical Silver |
Monks Investment and IShares Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monks Investment and IShares Physical
The main advantage of trading using opposite Monks Investment and IShares Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monks Investment position performs unexpectedly, IShares Physical 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 Physical will offset losses from the drop in IShares Physical's long position.| Monks Investment vs. SupplyMe Capital PLC | Monks Investment vs. Premier African Minerals | Monks Investment vs. SANTANDER UK 8 | Monks Investment vs. Tower Resources plc |
| IShares Physical vs. Amundi Physical Gold | IShares Physical vs. Invesco Physical Silver | IShares Physical vs. iShares Physical Silver | IShares Physical vs. WisdomTree Core Physical |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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