Correlation Between IShares Canadian and Slate Grocery
Can any of the company-specific risk be diversified away by investing in both IShares Canadian and Slate Grocery 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 Slate Grocery 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 Slate Grocery REIT, you can compare the effects of market volatilities on IShares Canadian and Slate Grocery 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 Slate Grocery. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and Slate Grocery.
Diversification Opportunities for IShares Canadian and Slate Grocery
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and Slate is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian HYBrid and Slate Grocery REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Grocery REIT 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 Slate Grocery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Grocery REIT has no effect on the direction of IShares Canadian i.e., IShares Canadian and Slate Grocery go up and down completely randomly.
Pair Corralation between IShares Canadian and Slate Grocery
Assuming the 90 days trading horizon IShares Canadian is expected to generate 2.34 times less return on investment than Slate Grocery. But when comparing it to its historical volatility, iShares Canadian HYBrid is 4.52 times less risky than Slate Grocery. It trades about 0.18 of its potential returns per unit of risk. Slate Grocery REIT is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 995.00 in Slate Grocery REIT on September 13, 2024 and sell it today you would earn a total of 30.00 from holding Slate Grocery REIT or generate 3.02% 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. Slate Grocery REIT
Performance |
| Timeline |
| iShares Canadian HYBrid |
| Slate Grocery REIT |
IShares Canadian and Slate Grocery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Canadian and Slate Grocery
The main advantage of trading using opposite IShares Canadian and Slate Grocery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian position performs unexpectedly, Slate Grocery 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 Slate Grocery will offset losses from the drop in Slate Grocery'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 |
| Slate Grocery vs. Slate Office REIT | Slate Grocery vs. Automotive Properties Real | Slate Grocery vs. BTB Real Estate | Slate Grocery 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |