Correlation Between Summerset Group and IShares Global
Can any of the company-specific risk be diversified away by investing in both Summerset 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 Summerset 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 Summerset Group Holdings and iShares Global Healthcare, you can compare the effects of market volatilities on Summerset 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 Summerset Group with a short position of IShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summerset Group and IShares Global.
Diversification Opportunities for Summerset Group and IShares Global
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Summerset and IShares is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Summerset 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 Summerset 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 Summerset 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 Summerset Group i.e., Summerset Group and IShares Global go up and down completely randomly.
Pair Corralation between Summerset Group and IShares Global
Assuming the 90 days trading horizon Summerset Group Holdings is expected to generate 1.2 times more return on investment than IShares Global. However, Summerset Group is 1.2 times more volatile than iShares Global Healthcare. It trades about 0.14 of its potential returns per unit of risk. iShares Global Healthcare is currently generating about -0.03 per unit of risk. If you would invest 1,137 in Summerset Group Holdings on September 3, 2024 and sell it today you would earn a total of 37.00 from holding Summerset Group Holdings or generate 3.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summerset Group Holdings vs. iShares Global Healthcare
Performance |
| Timeline |
| Summerset Group Holdings |
| iShares Global Healthcare |
Summerset Group and IShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summerset Group and IShares Global
The main advantage of trading using opposite Summerset Group and IShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summerset 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.| Summerset Group vs. Duxton Broadacre Farms | Summerset Group vs. Carnegie Clean Energy | Summerset Group vs. Centaurus Metals | Summerset Group vs. Perseus 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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