Correlation Between IShares Canadian and Conquest Resources
Can any of the company-specific risk be diversified away by investing in both IShares Canadian and Conquest Resources 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 Conquest Resources 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 Conquest Resources, you can compare the effects of market volatilities on IShares Canadian and Conquest Resources 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 Conquest Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and Conquest Resources.
Diversification Opportunities for IShares Canadian and Conquest Resources
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between IShares and Conquest is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian HYBrid and Conquest Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conquest Resources 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 Conquest Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conquest Resources has no effect on the direction of IShares Canadian i.e., IShares Canadian and Conquest Resources go up and down completely randomly.
Pair Corralation between IShares Canadian and Conquest Resources
Assuming the 90 days trading horizon IShares Canadian is expected to generate 17.14 times less return on investment than Conquest Resources. But when comparing it to its historical volatility, iShares Canadian HYBrid is 43.86 times less risky than Conquest Resources. It trades about 0.15 of its potential returns per unit of risk. Conquest Resources is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2.00 in Conquest Resources on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Conquest Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
iShares Canadian HYBrid vs. Conquest Resources
Performance |
| Timeline |
| iShares Canadian HYBrid |
| Conquest Resources |
IShares Canadian and Conquest Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Canadian and Conquest Resources
The main advantage of trading using opposite IShares Canadian and Conquest Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian position performs unexpectedly, Conquest Resources 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 Conquest Resources will offset losses from the drop in Conquest Resources' 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 |
| Conquest Resources vs. Plaza Retail REIT | Conquest Resources vs. XXIX Metal Corp | Conquest Resources vs. Tree Island Steel | Conquest Resources vs. Nicola Mining |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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