Correlation Between IShares Canadian and Mawer Canadien
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By analyzing existing cross correlation between iShares Canadian HYBrid and Mawer Canadien actions, you can compare the effects of market volatilities on IShares Canadian and Mawer Canadien 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 Canadian with a short position of Mawer Canadien. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and Mawer Canadien.
Diversification Opportunities for IShares Canadian and Mawer Canadien
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between IShares and Mawer is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian HYBrid and Mawer Canadien actions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mawer Canadien actions and IShares Canadian 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 Canadian HYBrid are associated (or correlated) with Mawer Canadien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mawer Canadien actions has no effect on the direction of IShares Canadian i.e., IShares Canadian and Mawer Canadien go up and down completely randomly.
Pair Corralation between IShares Canadian and Mawer Canadien
Assuming the 90 days trading horizon iShares Canadian HYBrid is expected to generate 0.42 times more return on investment than Mawer Canadien. However, iShares Canadian HYBrid is 2.38 times less risky than Mawer Canadien. It trades about 0.14 of its potential returns per unit of risk. Mawer Canadien actions is currently generating about -0.04 per unit of risk. If you would invest 1,942 in iShares Canadian HYBrid on November 27, 2024 and sell it today you would earn a total of 50.00 from holding iShares Canadian HYBrid or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Canadian HYBrid vs. Mawer Canadien actions
Performance |
| Timeline |
| iShares Canadian HYBrid |
| Mawer Canadien actions |
IShares Canadian and Mawer Canadien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Canadian and Mawer Canadien
The main advantage of trading using opposite IShares Canadian and Mawer Canadien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian position performs unexpectedly, Mawer Canadien 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 Mawer Canadien will offset losses from the drop in Mawer Canadien's long position.| IShares Canadian vs. iShares IG Corporate | IShares Canadian vs. iShares High Yield | IShares Canadian vs. iShares Floating Rate | IShares Canadian vs. iShares JP Morgan |
| Mawer Canadien vs. CI Global Resource | Mawer Canadien vs. CI Global Unconstrained | Mawer Canadien vs. Renaissance Global Science | Mawer Canadien vs. Manulife Global Equity |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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