Correlation Between SHBASS and Equinix
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By analyzing existing cross correlation between SHBASS 365 10 JUN 25 and Equinix, you can compare the effects of market volatilities on SHBASS and Equinix 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 SHBASS with a short position of Equinix. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHBASS and Equinix.
Diversification Opportunities for SHBASS and Equinix
Modest diversification
The 3 months correlation between SHBASS and Equinix is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding SHBASS 365 10 JUN 25 and Equinix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equinix and SHBASS 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 SHBASS 365 10 JUN 25 are associated (or correlated) with Equinix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equinix has no effect on the direction of SHBASS i.e., SHBASS and Equinix go up and down completely randomly.
Pair Corralation between SHBASS and Equinix
Assuming the 90 days trading horizon SHBASS 365 10 JUN 25 is expected to under-perform the Equinix. In addition to that, SHBASS is 1.87 times more volatile than Equinix. It trades about -0.19 of its total potential returns per unit of risk. Equinix is currently generating about 0.28 per unit of volatility. If you would invest 89,169 in Equinix on September 4, 2024 and sell it today you would earn a total of 7,315 from holding Equinix or generate 8.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 19.05% |
| Values | Daily Returns |
SHBASS 365 10 JUN 25 vs. Equinix
Performance |
| Timeline |
| SHBASS 365 10 |
| Equinix |
SHBASS and Equinix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SHBASS and Equinix
The main advantage of trading using opposite SHBASS and Equinix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHBASS position performs unexpectedly, Equinix 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 Equinix will offset losses from the drop in Equinix's long position.| SHBASS vs. Equinix | SHBASS vs. Assurant | SHBASS vs. Freedom Holding Corp | SHBASS vs. Papaya Growth Opportunity |
| Equinix vs. Crown Castle | Equinix vs. American Tower Corp | Equinix vs. Iron Mountain Incorporated | Equinix vs. Hannon Armstrong Sustainable |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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