Correlation Between IShares SPTSX and Yangarra Resources
Can any of the company-specific risk be diversified away by investing in both IShares SPTSX and Yangarra Resources 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 SPTSX and Yangarra Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares SPTSX Capped and Yangarra Resources, you can compare the effects of market volatilities on IShares SPTSX and Yangarra Resources 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 SPTSX with a short position of Yangarra Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares SPTSX and Yangarra Resources.
Diversification Opportunities for IShares SPTSX and Yangarra Resources
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between IShares and Yangarra is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding iShares SPTSX Capped and Yangarra Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yangarra Resources and IShares SPTSX 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 SPTSX Capped are associated (or correlated) with Yangarra Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yangarra Resources has no effect on the direction of IShares SPTSX i.e., IShares SPTSX and Yangarra Resources go up and down completely randomly.
Pair Corralation between IShares SPTSX and Yangarra Resources
Assuming the 90 days trading horizon iShares SPTSX Capped is expected to generate 0.64 times more return on investment than Yangarra Resources. However, iShares SPTSX Capped is 1.57 times less risky than Yangarra Resources. It trades about 0.05 of its potential returns per unit of risk. Yangarra Resources is currently generating about -0.05 per unit of risk. If you would invest 1,598 in iShares SPTSX Capped on August 26, 2024 and sell it today you would earn a total of 262.00 from holding iShares SPTSX Capped or generate 16.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares SPTSX Capped vs. Yangarra Resources
Performance |
| Timeline |
| iShares SPTSX Capped |
| Yangarra Resources |
IShares SPTSX and Yangarra Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares SPTSX and Yangarra Resources
The main advantage of trading using opposite IShares SPTSX and Yangarra Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SPTSX position performs unexpectedly, Yangarra Resources 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 Yangarra Resources will offset losses from the drop in Yangarra Resources' long position.| IShares SPTSX vs. iShares SPTSX Capped | IShares SPTSX vs. iShares SPTSX Global | IShares SPTSX vs. iShares SPTSX 60 | IShares SPTSX vs. iShares SPTSX Capped |
| Yangarra Resources vs. InPlay Oil Corp | Yangarra Resources vs. Bonterra Energy Corp | Yangarra Resources vs. Gear Energy | Yangarra Resources vs. Kelt Exploration |
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.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |