Correlation Between SportsHero and IShares Global
Can any of the company-specific risk be diversified away by investing in both SportsHero 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 SportsHero and IShares Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SportsHero and iShares Global Healthcare, you can compare the effects of market volatilities on SportsHero 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 SportsHero with a short position of IShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SportsHero and IShares Global.
Diversification Opportunities for SportsHero and IShares Global
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SportsHero and IShares is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding SportsHero 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 SportsHero 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 SportsHero 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 SportsHero i.e., SportsHero and IShares Global go up and down completely randomly.
Pair Corralation between SportsHero and IShares Global
Assuming the 90 days trading horizon SportsHero is expected to generate 19.09 times more return on investment than IShares Global. However, SportsHero is 19.09 times more volatile than iShares Global Healthcare. It trades about 0.13 of its potential returns per unit of risk. iShares Global Healthcare is currently generating about 0.05 per unit of risk. If you would invest 0.50 in SportsHero on September 3, 2024 and sell it today you would earn a total of 1.50 from holding SportsHero or generate 300.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SportsHero vs. iShares Global Healthcare
Performance |
| Timeline |
| SportsHero |
| iShares Global Healthcare |
SportsHero and IShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SportsHero and IShares Global
The main advantage of trading using opposite SportsHero and IShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SportsHero 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.| SportsHero vs. Encounter Resources | SportsHero vs. Tlou Energy | SportsHero vs. Superior Resources | SportsHero vs. Peel Mining |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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