Correlation Between IShares Global and FedEx
Can any of the company-specific risk be diversified away by investing in both IShares Global and FedEx 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 FedEx 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 FedEx, you can compare the effects of market volatilities on IShares Global and FedEx 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 FedEx. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and FedEx.
Diversification Opportunities for IShares Global and FedEx
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and FedEx is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Timber and FedEx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FedEx 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 FedEx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FedEx has no effect on the direction of IShares Global i.e., IShares Global and FedEx go up and down completely randomly.
Pair Corralation between IShares Global and FedEx
If you would invest 458,070 in FedEx on September 19, 2024 and sell it today you would earn a total of 106,630 from holding FedEx or generate 23.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
iShares Global Timber vs. FedEx
Performance |
| Timeline |
| iShares Global Timber |
| FedEx |
IShares Global and FedEx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and FedEx
The main advantage of trading using opposite IShares Global and FedEx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global position performs unexpectedly, FedEx 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 FedEx will offset losses from the drop in FedEx's long position.| IShares Global vs. The Select Sector | IShares Global vs. ProShares Trust | IShares Global vs. iShares Trust | IShares Global vs. Vanguard World |
| FedEx vs. Honeywell International | FedEx vs. The Walt Disney | FedEx vs. Netflix | FedEx vs. The Goodyear Tire |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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