Correlation Between IShares Jantzi and IShares Global
Can any of the company-specific risk be diversified away by investing in both IShares Jantzi and IShares Global 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 Jantzi and IShares Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Jantzi Social and iShares Global Infrastructure, you can compare the effects of market volatilities on IShares Jantzi and IShares Global 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 Jantzi with a short position of IShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Jantzi and IShares Global.
Diversification Opportunities for IShares Jantzi and IShares Global
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and IShares is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding iShares Jantzi Social and iShares Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Global Infra and IShares Jantzi 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 Jantzi Social are associated (or correlated) with IShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Global Infra has no effect on the direction of IShares Jantzi i.e., IShares Jantzi and IShares Global go up and down completely randomly.
Pair Corralation between IShares Jantzi and IShares Global
Assuming the 90 days trading horizon IShares Jantzi is expected to generate 1.56 times less return on investment than IShares Global. But when comparing it to its historical volatility, iShares Jantzi Social is 1.02 times less risky than IShares Global. It trades about 0.23 of its potential returns per unit of risk. iShares Global Infrastructure is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 4,749 in iShares Global Infrastructure on August 25, 2024 and sell it today you would earn a total of 294.00 from holding iShares Global Infrastructure or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
iShares Jantzi Social vs. iShares Global Infrastructure
Performance |
| Timeline |
| iShares Jantzi Social |
| iShares Global Infra |
IShares Jantzi and IShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Jantzi and IShares Global
The main advantage of trading using opposite IShares Jantzi and IShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Jantzi position performs unexpectedly, IShares Global 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 Global will offset losses from the drop in IShares Global's long position.| IShares Jantzi vs. iShares SPTSX 60 | IShares Jantzi vs. iShares Core SP | IShares Jantzi vs. iShares SPTSX Composite | IShares Jantzi vs. iShares Core MSCI |
| IShares Global vs. iShares Global Real | IShares Global vs. iShares Global Monthly | IShares Global vs. iShares Equal Weight | IShares Global vs. iShares Jantzi Social |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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