Correlation Between IShares Canadian and Ceres Global
Can any of the company-specific risk be diversified away by investing in both IShares Canadian and Ceres Global 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 Ceres Global 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 Ceres Global Ag, you can compare the effects of market volatilities on IShares Canadian and Ceres Global 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 Ceres Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and Ceres Global.
Diversification Opportunities for IShares Canadian and Ceres Global
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and Ceres is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian HYBrid and Ceres Global Ag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceres Global Ag 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 Ceres Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceres Global Ag has no effect on the direction of IShares Canadian i.e., IShares Canadian and Ceres Global go up and down completely randomly.
Pair Corralation between IShares Canadian and Ceres Global
Assuming the 90 days trading horizon IShares Canadian is expected to generate 4.58 times less return on investment than Ceres Global. But when comparing it to its historical volatility, iShares Canadian HYBrid is 7.46 times less risky than Ceres Global. It trades about 0.19 of its potential returns per unit of risk. Ceres Global Ag is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 279.00 in Ceres Global Ag on September 2, 2024 and sell it today you would earn a total of 41.00 from holding Ceres Global Ag or generate 14.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Canadian HYBrid vs. Ceres Global Ag
Performance |
| Timeline |
| iShares Canadian HYBrid |
| Ceres Global Ag |
IShares Canadian and Ceres Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Canadian and Ceres Global
The main advantage of trading using opposite IShares Canadian and Ceres Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian position performs unexpectedly, Ceres Global 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 Ceres Global will offset losses from the drop in Ceres Global'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 |
| Ceres Global vs. Buhler Industries | Ceres Global vs. Caldwell Partners International | Ceres Global vs. Clarke Inc | Ceres Global vs. Big Rock Brewery |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |