Correlation Between IShares Canadian and CNJ Capital
Can any of the company-specific risk be diversified away by investing in both IShares Canadian and CNJ Capital 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 Canadian and CNJ Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Canadian HYBrid and CNJ Capital Investments, you can compare the effects of market volatilities on IShares Canadian and CNJ Capital 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 CNJ Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and CNJ Capital.
Diversification Opportunities for IShares Canadian and CNJ Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and CNJ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian HYBrid and CNJ Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNJ Capital Investments 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 CNJ Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNJ Capital Investments has no effect on the direction of IShares Canadian i.e., IShares Canadian and CNJ Capital go up and down completely randomly.
Pair Corralation between IShares Canadian and CNJ Capital
If you would invest 1,953 in iShares Canadian HYBrid on August 27, 2024 and sell it today you would earn a total of 1.00 from holding iShares Canadian HYBrid or generate 0.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Canadian HYBrid vs. CNJ Capital Investments
Performance |
| Timeline |
| iShares Canadian HYBrid |
| CNJ Capital Investments |
IShares Canadian and CNJ Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Canadian and CNJ Capital
The main advantage of trading using opposite IShares Canadian and CNJ Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian position performs unexpectedly, CNJ Capital 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 CNJ Capital will offset losses from the drop in CNJ Capital'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 |
| CNJ Capital vs. NVIDIA CDR | CNJ Capital vs. Apple Inc CDR | CNJ Capital vs. Microsoft Corp CDR | CNJ Capital vs. Amazon CDR |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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