Correlation Between IShares Canadian and Network Media
Can any of the company-specific risk be diversified away by investing in both IShares Canadian and Network Media 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 Network Media 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 Network Media Group, you can compare the effects of market volatilities on IShares Canadian and Network Media 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 Network Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and Network Media.
Diversification Opportunities for IShares Canadian and Network Media
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and Network is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian HYBrid and Network Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Network Media Group 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 Network Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Network Media Group has no effect on the direction of IShares Canadian i.e., IShares Canadian and Network Media go up and down completely randomly.
Pair Corralation between IShares Canadian and Network Media
Assuming the 90 days trading horizon iShares Canadian HYBrid is expected to generate 0.05 times more return on investment than Network Media. However, iShares Canadian HYBrid is 19.61 times less risky than Network Media. It trades about 0.1 of its potential returns per unit of risk. Network Media Group is currently generating about -0.36 per unit of risk. If you would invest 1,953 in iShares Canadian HYBrid on August 29, 2024 and sell it today you would earn a total of 11.00 from holding iShares Canadian HYBrid or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Canadian HYBrid vs. Network Media Group
Performance |
| Timeline |
| iShares Canadian HYBrid |
| Network Media Group |
IShares Canadian and Network Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Canadian and Network Media
The main advantage of trading using opposite IShares Canadian and Network Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian position performs unexpectedly, Network Media 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 Network Media will offset losses from the drop in Network Media'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 |
| Network Media vs. Renoworks Software | Network Media vs. Urbanimmersive | Network Media vs. Pioneering Technology Corp | Network Media vs. Gatekeeper Systems |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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