Correlation Between IShares Canadian and Lysander Slater
Can any of the company-specific risk be diversified away by investing in both IShares Canadian and Lysander Slater 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 Lysander Slater 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 Lysander Slater Preferred Share, you can compare the effects of market volatilities on IShares Canadian and Lysander Slater 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 Lysander Slater. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and Lysander Slater.
Diversification Opportunities for IShares Canadian and Lysander Slater
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IShares and Lysander is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian HYBrid and Lysander Slater Preferred Shar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lysander Slater Pref 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 Lysander Slater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lysander Slater Pref has no effect on the direction of IShares Canadian i.e., IShares Canadian and Lysander Slater go up and down completely randomly.
Pair Corralation between IShares Canadian and Lysander Slater
Assuming the 90 days trading horizon IShares Canadian is expected to generate 1.26 times less return on investment than Lysander Slater. But when comparing it to its historical volatility, iShares Canadian HYBrid is 1.29 times less risky than Lysander Slater. It trades about 0.23 of its potential returns per unit of risk. Lysander Slater Preferred Share is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 946.00 in Lysander Slater Preferred Share on September 1, 2024 and sell it today you would earn a total of 23.00 from holding Lysander Slater Preferred Share or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
iShares Canadian HYBrid vs. Lysander Slater Preferred Shar
Performance |
| Timeline |
| iShares Canadian HYBrid |
| Lysander Slater Pref |
IShares Canadian and Lysander Slater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Canadian and Lysander Slater
The main advantage of trading using opposite IShares Canadian and Lysander Slater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian position performs unexpectedly, Lysander Slater 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 Lysander Slater will offset losses from the drop in Lysander Slater's long position.| IShares Canadian vs. Global X Active | IShares Canadian vs. Brompton Flaherty Crumrine | IShares Canadian vs. CIBC Core Fixed | IShares Canadian vs. BMO Aggregate Bond |
| Lysander Slater vs. BMO Covered Call | Lysander Slater vs. Forstrong Global Income | Lysander Slater vs. BMO Aggregate Bond | Lysander Slater vs. iShares Canadian HYBrid |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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