Correlation Between Prenetics Global and IShares
Can any of the company-specific risk be diversified away by investing in both Prenetics Global and IShares 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 Prenetics Global and IShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prenetics Global and IShares, you can compare the effects of market volatilities on Prenetics Global and IShares 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 Prenetics Global with a short position of IShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prenetics Global and IShares.
Diversification Opportunities for Prenetics Global and IShares
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Prenetics and IShares is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Prenetics Global and IShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares and Prenetics Global 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 Prenetics Global are associated (or correlated) with IShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares has no effect on the direction of Prenetics Global i.e., Prenetics Global and IShares go up and down completely randomly.
Pair Corralation between Prenetics Global and IShares
If you would invest 436.00 in Prenetics Global on September 3, 2024 and sell it today you would earn a total of 12.00 from holding Prenetics Global or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Prenetics Global vs. IShares
Performance |
| Timeline |
| Prenetics Global |
| IShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Prenetics Global and IShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prenetics Global and IShares
The main advantage of trading using opposite Prenetics Global and IShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prenetics Global position performs unexpectedly, IShares 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 will offset losses from the drop in IShares' long position.| Prenetics Global vs. Neogen | Prenetics Global vs. Qiagen NV | Prenetics Global vs. Aclaris Therapeutics | Prenetics Global vs. Fonar |
| IShares vs. AXIS Capital Holdings | IShares vs. Renaissancere Holdings | IShares vs. Aspira Womens Health | IShares vs. Prenetics Global |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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