Correlation Between IShares Canadian and Supremex
Can any of the company-specific risk be diversified away by investing in both IShares Canadian and Supremex 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 Supremex 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 Supremex, you can compare the effects of market volatilities on IShares Canadian and Supremex 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 Supremex. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and Supremex.
Diversification Opportunities for IShares Canadian and Supremex
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Supremex is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian HYBrid and Supremex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supremex 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 Supremex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supremex has no effect on the direction of IShares Canadian i.e., IShares Canadian and Supremex go up and down completely randomly.
Pair Corralation between IShares Canadian and Supremex
Assuming the 90 days trading horizon iShares Canadian HYBrid is expected to generate 0.15 times more return on investment than Supremex. However, iShares Canadian HYBrid is 6.48 times less risky than Supremex. It trades about 0.08 of its potential returns per unit of risk. Supremex is currently generating about -0.01 per unit of risk. If you would invest 1,702 in iShares Canadian HYBrid on September 2, 2024 and sell it today you would earn a total of 289.00 from holding iShares Canadian HYBrid or generate 16.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Canadian HYBrid vs. Supremex
Performance |
| Timeline |
| iShares Canadian HYBrid |
| Supremex |
IShares Canadian and Supremex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Canadian and Supremex
The main advantage of trading using opposite IShares Canadian and Supremex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian position performs unexpectedly, Supremex 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 Supremex will offset losses from the drop in Supremex'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 |
| Supremex vs. K Bro Linen | Supremex vs. The Keg Royalties | Supremex vs. Pollard Banknote Limited | Supremex vs. SIR Royalty Income |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |