Correlation Between IShares Canadian and Standard Uranium
Can any of the company-specific risk be diversified away by investing in both IShares Canadian and Standard Uranium 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 Standard Uranium 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 Standard Uranium, you can compare the effects of market volatilities on IShares Canadian and Standard Uranium 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 Standard Uranium. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and Standard Uranium.
Diversification Opportunities for IShares Canadian and Standard Uranium
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Standard is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian HYBrid and Standard Uranium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Uranium 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 Standard Uranium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Uranium has no effect on the direction of IShares Canadian i.e., IShares Canadian and Standard Uranium go up and down completely randomly.
Pair Corralation between IShares Canadian and Standard Uranium
Assuming the 90 days trading horizon IShares Canadian is expected to generate 1.86 times less return on investment than Standard Uranium. But when comparing it to its historical volatility, iShares Canadian HYBrid is 20.9 times less risky than Standard Uranium. It trades about 0.07 of its potential returns per unit of risk. Standard Uranium is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 35.00 in Standard Uranium on August 26, 2024 and sell it today you would lose (26.50) from holding Standard Uranium or give up 75.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Canadian HYBrid vs. Standard Uranium
Performance |
| Timeline |
| iShares Canadian HYBrid |
| Standard Uranium |
IShares Canadian and Standard Uranium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Canadian and Standard Uranium
The main advantage of trading using opposite IShares Canadian and Standard Uranium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian position performs unexpectedly, Standard Uranium 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 Standard Uranium will offset losses from the drop in Standard Uranium'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 |
| Standard Uranium vs. Baselode Energy Corp | Standard Uranium vs. GoviEx Uranium | Standard Uranium vs. Global Atomic Corp | Standard Uranium vs. enCore Energy Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |