Correlation Between IShares Core and CI ONE
Can any of the company-specific risk be diversified away by investing in both IShares Core and CI ONE 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 CI ONE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core Equity and CI ONE Global, you can compare the effects of market volatilities on IShares Core and CI ONE 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 CI ONE. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and CI ONE.
Diversification Opportunities for IShares Core and CI ONE
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and ONEQ is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core Equity and CI ONE Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI ONE Global 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 Equity are associated (or correlated) with CI ONE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI ONE Global has no effect on the direction of IShares Core i.e., IShares Core and CI ONE go up and down completely randomly.
Pair Corralation between IShares Core and CI ONE
Assuming the 90 days trading horizon iShares Core Equity is expected to generate 0.72 times more return on investment than CI ONE. However, iShares Core Equity is 1.39 times less risky than CI ONE. It trades about 0.45 of its potential returns per unit of risk. CI ONE Global is currently generating about 0.21 per unit of risk. If you would invest 3,272 in iShares Core Equity on September 1, 2024 and sell it today you would earn a total of 175.00 from holding iShares Core Equity or generate 5.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
iShares Core Equity vs. CI ONE Global
Performance |
| Timeline |
| iShares Core Equity |
| CI ONE Global |
IShares Core and CI ONE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and CI ONE
The main advantage of trading using opposite IShares Core and CI ONE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, CI ONE 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 CI ONE will offset losses from the drop in CI ONE's long position.| IShares Core vs. Brompton Global Dividend | IShares Core vs. Brompton European Dividend | IShares Core vs. Brompton North American | IShares Core vs. Global Healthcare Income |
| CI ONE vs. Brompton Global Dividend | CI ONE vs. Brompton European Dividend | CI ONE vs. Brompton North American | CI ONE vs. Global Healthcare Income |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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