Correlation Between IShares Global and CMR SAB
Can any of the company-specific risk be diversified away by investing in both IShares Global and CMR SAB 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 Global and CMR SAB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Global Timber and CMR SAB de, you can compare the effects of market volatilities on IShares Global and CMR SAB 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 Global with a short position of CMR SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and CMR SAB.
Diversification Opportunities for IShares Global and CMR SAB
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and CMR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Timber and CMR SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMR SAB de and IShares Global 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 Global Timber are associated (or correlated) with CMR SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMR SAB de has no effect on the direction of IShares Global i.e., IShares Global and CMR SAB go up and down completely randomly.
Pair Corralation between IShares Global and CMR SAB
If you would invest 120.00 in CMR SAB de on August 28, 2024 and sell it today you would earn a total of 17.00 from holding CMR SAB de or generate 14.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Global Timber vs. CMR SAB de
Performance |
| Timeline |
| iShares Global Timber |
| CMR SAB de |
IShares Global and CMR SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and CMR SAB
The main advantage of trading using opposite IShares Global and CMR SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global position performs unexpectedly, CMR SAB 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 CMR SAB will offset losses from the drop in CMR SAB's long position.| IShares Global vs. iShares Trust | IShares Global vs. iShares Trust | IShares Global vs. iShares Trust | IShares Global vs. iShares Trust |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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