Correlation Between IShares Jantzi and IShares Convertible
Can any of the company-specific risk be diversified away by investing in both IShares Jantzi and IShares Convertible 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 Convertible 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 Convertible Bond, you can compare the effects of market volatilities on IShares Jantzi and IShares Convertible 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 Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Jantzi and IShares Convertible.
Diversification Opportunities for IShares Jantzi and IShares Convertible
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and IShares is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding iShares Jantzi Social and iShares Convertible Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Convertible Bond 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 Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Convertible Bond has no effect on the direction of IShares Jantzi i.e., IShares Jantzi and IShares Convertible go up and down completely randomly.
Pair Corralation between IShares Jantzi and IShares Convertible
Assuming the 90 days trading horizon iShares Jantzi Social is expected to generate 1.09 times more return on investment than IShares Convertible. However, IShares Jantzi is 1.09 times more volatile than iShares Convertible Bond. It trades about 0.08 of its potential returns per unit of risk. iShares Convertible Bond is currently generating about 0.04 per unit of risk. If you would invest 2,935 in iShares Jantzi Social on November 27, 2024 and sell it today you would earn a total of 879.00 from holding iShares Jantzi Social or generate 29.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Jantzi Social vs. iShares Convertible Bond
Performance |
| Timeline |
| iShares Jantzi Social |
| iShares Convertible Bond |
IShares Jantzi and IShares Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Jantzi and IShares Convertible
The main advantage of trading using opposite IShares Jantzi and IShares Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Jantzi position performs unexpectedly, IShares Convertible 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 Convertible will offset losses from the drop in IShares Convertible's long position.| 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 |
| IShares Convertible vs. iShares 1 10Yr Laddered | IShares Convertible vs. CI Canadian Convertible | IShares Convertible vs. iShares Floating Rate | IShares Convertible vs. iShares JP Morgan |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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