Correlation Between IShares Core and IShares Jantzi
Can any of the company-specific risk be diversified away by investing in both IShares Core and IShares Jantzi 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 Core and IShares Jantzi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core MSCI and iShares Jantzi Social, you can compare the effects of market volatilities on IShares Core and IShares Jantzi 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 Core with a short position of IShares Jantzi. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and IShares Jantzi.
Diversification Opportunities for IShares Core and IShares Jantzi
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and IShares is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core MSCI and iShares Jantzi Social in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Jantzi Social and IShares Core 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 Core MSCI are associated (or correlated) with IShares Jantzi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Jantzi Social has no effect on the direction of IShares Core i.e., IShares Core and IShares Jantzi go up and down completely randomly.
Pair Corralation between IShares Core and IShares Jantzi
Assuming the 90 days trading horizon IShares Core is expected to generate 1.93 times less return on investment than IShares Jantzi. But when comparing it to its historical volatility, iShares Core MSCI is 1.07 times less risky than IShares Jantzi. It trades about 0.07 of its potential returns per unit of risk. iShares Jantzi Social is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,154 in iShares Jantzi Social on August 29, 2024 and sell it today you would earn a total of 613.00 from holding iShares Jantzi Social or generate 19.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Core MSCI vs. iShares Jantzi Social
Performance |
| Timeline |
| iShares Core MSCI |
| iShares Jantzi Social |
IShares Core and IShares Jantzi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and IShares Jantzi
The main advantage of trading using opposite IShares Core and IShares Jantzi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, IShares Jantzi 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 IShares Jantzi will offset losses from the drop in IShares Jantzi's long position.| IShares Core vs. iShares Core MSCI | IShares Core vs. iShares Core SPTSX | IShares Core vs. Vanguard Total Market | IShares Core vs. iShares Core SP |
| IShares Jantzi vs. iShares Convertible Bond | IShares Jantzi vs. iShares SP Mid Cap | IShares Jantzi vs. iShares Edge MSCI | IShares Jantzi vs. iShares Flexible Monthly |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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