Correlation Between Nemak S and IShares Trust
Can any of the company-specific risk be diversified away by investing in both Nemak S and IShares Trust 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 Nemak S and IShares Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nemak S A and iShares Trust , you can compare the effects of market volatilities on Nemak S and IShares Trust 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 Nemak S with a short position of IShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nemak S and IShares Trust.
Diversification Opportunities for Nemak S and IShares Trust
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nemak and IShares is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Nemak S A and iShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Trust and Nemak S 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 Nemak S A are associated (or correlated) with IShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Trust has no effect on the direction of Nemak S i.e., Nemak S and IShares Trust go up and down completely randomly.
Pair Corralation between Nemak S and IShares Trust
Assuming the 90 days trading horizon Nemak S A is expected to under-perform the IShares Trust. In addition to that, Nemak S is 1.32 times more volatile than iShares Trust . It trades about -0.08 of its total potential returns per unit of risk. iShares Trust is currently generating about 0.07 per unit of volatility. If you would invest 137,759 in iShares Trust on September 2, 2024 and sell it today you would earn a total of 51,841 from holding iShares Trust or generate 37.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.85% |
| Values | Daily Returns |
Nemak S A vs. iShares Trust
Performance |
| Timeline |
| Nemak S A |
| iShares Trust |
Nemak S and IShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nemak S and IShares Trust
The main advantage of trading using opposite Nemak S and IShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nemak S position performs unexpectedly, IShares Trust 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 Trust will offset losses from the drop in IShares Trust's long position.| Nemak S vs. GMxico Transportes SAB | Nemak S vs. Southern Copper | Nemak S vs. Lloyds Banking Group | Nemak S vs. The Bank of |
| IShares Trust vs. iShares Trust | IShares Trust vs. iShares Trust | IShares Trust vs. iShares Trust | IShares Trust vs. iShares 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |