Correlation Between Swiss Leader and IShares Core
Can any of the company-specific risk be diversified away by investing in both Swiss Leader and IShares Core 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 Swiss Leader and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swiss Leader Price and iShares Core CHF, you can compare the effects of market volatilities on Swiss Leader and IShares Core 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 Swiss Leader with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Leader and IShares Core.
Diversification Opportunities for Swiss Leader and IShares Core
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Swiss and IShares is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Leader Price and iShares Core CHF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core CHF and Swiss Leader 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 Swiss Leader Price are associated (or correlated) with IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core CHF has no effect on the direction of Swiss Leader i.e., Swiss Leader and IShares Core go up and down completely randomly.
Pair Corralation between Swiss Leader and IShares Core
Assuming the 90 days trading horizon Swiss Leader Price is expected to generate 3.8 times more return on investment than IShares Core. However, Swiss Leader is 3.8 times more volatile than iShares Core CHF. It trades about 0.05 of its potential returns per unit of risk. iShares Core CHF is currently generating about -0.13 per unit of risk. If you would invest 194,573 in Swiss Leader Price on October 10, 2024 and sell it today you would earn a total of 1,268 from holding Swiss Leader Price or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swiss Leader Price vs. iShares Core CHF
Performance |
| Timeline |
Swiss Leader and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Swiss Leader Price
Pair trading matchups for Swiss Leader
iShares Core CHF
Pair trading matchups for IShares Core
Pair Trading with Swiss Leader and IShares Core
The main advantage of trading using opposite Swiss Leader and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Leader position performs unexpectedly, IShares Core 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 Core will offset losses from the drop in IShares Core's long position.| Swiss Leader vs. mobilezone ag | Swiss Leader vs. Logitech International SA | Swiss Leader vs. Metall Zug AG | Swiss Leader vs. Liechtensteinische Landesbank AG |
| IShares Core vs. UBSFund Solutions MSCI | IShares Core vs. Vanguard SP 500 | IShares Core vs. iShares Core SP | IShares Core vs. iShares Core MSCI |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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