Correlation Between IShares Global and HIAG Immobilien
Can any of the company-specific risk be diversified away by investing in both IShares Global and HIAG Immobilien 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 HIAG Immobilien 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 HIAG Immobilien Holding, you can compare the effects of market volatilities on IShares Global and HIAG Immobilien 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 HIAG Immobilien. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and HIAG Immobilien.
Diversification Opportunities for IShares Global and HIAG Immobilien
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IShares and HIAG is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Timber and HIAG Immobilien Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIAG Immobilien Holding 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 HIAG Immobilien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIAG Immobilien Holding has no effect on the direction of IShares Global i.e., IShares Global and HIAG Immobilien go up and down completely randomly.
Pair Corralation between IShares Global and HIAG Immobilien
Assuming the 90 days trading horizon iShares Global Timber is expected to generate 1.12 times more return on investment than HIAG Immobilien. However, IShares Global is 1.12 times more volatile than HIAG Immobilien Holding. It trades about 0.02 of its potential returns per unit of risk. HIAG Immobilien Holding is currently generating about 0.01 per unit of risk. If you would invest 2,629 in iShares Global Timber on September 3, 2024 and sell it today you would earn a total of 141.00 from holding iShares Global Timber or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 88.89% |
| Values | Daily Returns |
iShares Global Timber vs. HIAG Immobilien Holding
Performance |
| Timeline |
| iShares Global Timber |
| HIAG Immobilien Holding |
IShares Global and HIAG Immobilien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and HIAG Immobilien
The main advantage of trading using opposite IShares Global and HIAG Immobilien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global position performs unexpectedly, HIAG Immobilien 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 HIAG Immobilien will offset losses from the drop in HIAG Immobilien's long position.| IShares Global vs. UBSFund Solutions MSCI | IShares Global vs. Vanguard SP 500 | IShares Global vs. iShares VII PLC | IShares Global vs. iShares Core SP |
| HIAG Immobilien vs. Allreal Holding | HIAG Immobilien vs. Mobimo Hldg | HIAG Immobilien vs. Swiss Prime Site | HIAG Immobilien vs. PSP Swiss Property |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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