Correlation Between IShares Physical and Cornish Metals
Can any of the company-specific risk be diversified away by investing in both IShares Physical and Cornish Metals 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 IShares Physical and Cornish Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Physical Platinum and Cornish Metals, you can compare the effects of market volatilities on IShares Physical and Cornish Metals 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 IShares Physical with a short position of Cornish Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Physical and Cornish Metals.
Diversification Opportunities for IShares Physical and Cornish Metals
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and Cornish is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding iShares Physical Platinum and Cornish Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cornish Metals and IShares Physical 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 iShares Physical Platinum are associated (or correlated) with Cornish Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cornish Metals has no effect on the direction of IShares Physical i.e., IShares Physical and Cornish Metals go up and down completely randomly.
Pair Corralation between IShares Physical and Cornish Metals
Assuming the 90 days trading horizon IShares Physical is expected to generate 24.21 times less return on investment than Cornish Metals. But when comparing it to its historical volatility, iShares Physical Platinum is 2.79 times less risky than Cornish Metals. It trades about 0.0 of its potential returns per unit of risk. Cornish Metals is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,025 in Cornish Metals on September 14, 2024 and sell it today you would lose (140.00) from holding Cornish Metals or give up 13.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
iShares Physical Platinum vs. Cornish Metals
Performance |
| Timeline |
| iShares Physical Platinum |
| Cornish Metals |
IShares Physical and Cornish Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Physical and Cornish Metals
The main advantage of trading using opposite IShares Physical and Cornish Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Physical position performs unexpectedly, Cornish Metals 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 Cornish Metals will offset losses from the drop in Cornish Metals' long position.| IShares Physical vs. Ecofin Global Utilities | IShares Physical vs. Medical Properties Trust | IShares Physical vs. Taylor Maritime Investments | IShares Physical vs. Intuitive Investments Group |
| Cornish Metals vs. Givaudan SA | Cornish Metals vs. Antofagasta PLC | Cornish Metals vs. Ferrexpo PLC | Cornish Metals vs. Atalaya Mining |
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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