Correlation Between Impact Shares and Quaker Investment
Can any of the company-specific risk be diversified away by investing in both Impact Shares and Quaker Investment 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 Impact Shares and Quaker Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impact Shares NAACP and Quaker Investment Trust, you can compare the effects of market volatilities on Impact Shares and Quaker Investment 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 Impact Shares with a short position of Quaker Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impact Shares and Quaker Investment.
Diversification Opportunities for Impact Shares and Quaker Investment
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Impact and Quaker is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Impact Shares NAACP and Quaker Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaker Investment Trust and Impact Shares 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 Impact Shares NAACP are associated (or correlated) with Quaker Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quaker Investment Trust has no effect on the direction of Impact Shares i.e., Impact Shares and Quaker Investment go up and down completely randomly.
Pair Corralation between Impact Shares and Quaker Investment
Given the investment horizon of 90 days Impact Shares NAACP is expected to generate 2.4 times more return on investment than Quaker Investment. However, Impact Shares is 2.4 times more volatile than Quaker Investment Trust. It trades about 0.19 of its potential returns per unit of risk. Quaker Investment Trust is currently generating about -0.04 per unit of risk. If you would invest 3,932 in Impact Shares NAACP on August 31, 2024 and sell it today you would earn a total of 356.00 from holding Impact Shares NAACP or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impact Shares NAACP vs. Quaker Investment Trust
Performance |
| Timeline |
| Impact Shares NAACP |
| Quaker Investment Trust |
Impact Shares and Quaker Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impact Shares and Quaker Investment
The main advantage of trading using opposite Impact Shares and Quaker Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impact Shares position performs unexpectedly, Quaker Investment 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 Quaker Investment will offset losses from the drop in Quaker Investment's long position.| Impact Shares vs. Impact Shares YWCA | Impact Shares vs. SPDR SSGA Gender | Impact Shares vs. Global X Conscious | Impact Shares vs. PIMCO RAFI Dynamic |
| Quaker Investment vs. Listed Funds Trust | Quaker Investment vs. ClearShares Piton Intermediate | Quaker Investment vs. John Hancock Exchange Traded | Quaker Investment vs. SSGA Active Trust |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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