Correlation Between Pact Group and IShares Global
Can any of the company-specific risk be diversified away by investing in both Pact Group and IShares Global 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 Pact Group and IShares Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pact Group Holdings and iShares Global Healthcare, you can compare the effects of market volatilities on Pact Group and IShares Global 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 Pact Group with a short position of IShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pact Group and IShares Global.
Diversification Opportunities for Pact Group and IShares Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pact and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pact Group Holdings and iShares Global Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Global Healthcare and Pact Group 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 Pact Group Holdings are associated (or correlated) with IShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Global Healthcare has no effect on the direction of Pact Group i.e., Pact Group and IShares Global go up and down completely randomly.
Pair Corralation between Pact Group and IShares Global
Assuming the 90 days trading horizon Pact Group Holdings is expected to generate 1.56 times more return on investment than IShares Global. However, Pact Group is 1.56 times more volatile than iShares Global Healthcare. It trades about -0.07 of its potential returns per unit of risk. iShares Global Healthcare is currently generating about -0.13 per unit of risk. If you would invest 82.00 in Pact Group Holdings on August 28, 2024 and sell it today you would lose (2.00) from holding Pact Group Holdings or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pact Group Holdings vs. iShares Global Healthcare
Performance |
| Timeline |
| Pact Group Holdings |
| iShares Global Healthcare |
Pact Group and IShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pact Group and IShares Global
The main advantage of trading using opposite Pact Group and IShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pact Group position performs unexpectedly, IShares Global 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 Global will offset losses from the drop in IShares Global's long position.| Pact Group vs. Mirrabooka Investments | Pact Group vs. Nova Eye Medical | Pact Group vs. MFF Capital Investments | Pact Group vs. Air New Zealand |
| IShares Global vs. iShares MSCI Emerging | IShares Global vs. iShares Global Aggregate | IShares Global vs. iShares CoreSP MidCap | IShares Global vs. iShares SP 500 |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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