Correlation Between Lysander Slater and IShares 1
Can any of the company-specific risk be diversified away by investing in both Lysander Slater and IShares 1 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 Lysander Slater and IShares 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lysander Slater Preferred Share and iShares 1 5 Year, you can compare the effects of market volatilities on Lysander Slater and IShares 1 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 Lysander Slater with a short position of IShares 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lysander Slater and IShares 1.
Diversification Opportunities for Lysander Slater and IShares 1
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lysander and IShares is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lysander Slater Preferred Shar and iShares 1 5 Year in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares 1 5 and Lysander Slater 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 Lysander Slater Preferred Share are associated (or correlated) with IShares 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares 1 5 has no effect on the direction of Lysander Slater i.e., Lysander Slater and IShares 1 go up and down completely randomly.
Pair Corralation between Lysander Slater and IShares 1
Assuming the 90 days horizon Lysander Slater Preferred Share is expected to generate 1.71 times more return on investment than IShares 1. However, Lysander Slater is 1.71 times more volatile than iShares 1 5 Year. It trades about 0.41 of its potential returns per unit of risk. iShares 1 5 Year is currently generating about 0.22 per unit of risk. If you would invest 944.00 in Lysander Slater Preferred Share on September 13, 2024 and sell it today you would earn a total of 30.00 from holding Lysander Slater Preferred Share or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lysander Slater Preferred Shar vs. iShares 1 5 Year
Performance |
| Timeline |
| Lysander Slater Pref |
| iShares 1 5 |
Lysander Slater and IShares 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lysander Slater and IShares 1
The main advantage of trading using opposite Lysander Slater and IShares 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lysander Slater position performs unexpectedly, IShares 1 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 1 will offset losses from the drop in IShares 1's long position.| Lysander Slater vs. Evolve Active Canadian | Lysander Slater vs. Global X Active | Lysander Slater vs. RBC Canadian Preferred | Lysander Slater vs. Global X Active |
| IShares 1 vs. iShares Canadian Universe | IShares 1 vs. iShares Canadian Real | IShares 1 vs. iShares Core Canadian | IShares 1 vs. iShares Core Canadian |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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