Correlation Between IShares Canadian and Current Water
Can any of the company-specific risk be diversified away by investing in both IShares Canadian and Current Water 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 Current Water 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 Current Water Technologies, you can compare the effects of market volatilities on IShares Canadian and Current Water 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 Current Water. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and Current Water.
Diversification Opportunities for IShares Canadian and Current Water
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and Current is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian HYBrid and Current Water Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Current Water Techno 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 Current Water. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Current Water Techno has no effect on the direction of IShares Canadian i.e., IShares Canadian and Current Water go up and down completely randomly.
Pair Corralation between IShares Canadian and Current Water
Assuming the 90 days trading horizon IShares Canadian is expected to generate 9.06 times less return on investment than Current Water. But when comparing it to its historical volatility, iShares Canadian HYBrid is 36.59 times less risky than Current Water. It trades about 0.23 of its potential returns per unit of risk. Current Water Technologies is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3.00 in Current Water Technologies on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Current Water Technologies or generate 0.0% 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. Current Water Technologies
Performance |
| Timeline |
| iShares Canadian HYBrid |
| Current Water Techno |
IShares Canadian and Current Water Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Canadian and Current Water
The main advantage of trading using opposite IShares Canadian and Current Water positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian position performs unexpectedly, Current Water 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 Current Water will offset losses from the drop in Current Water'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 |
| Current Water vs. Firan Technology Group | Current Water vs. Baylin Technologies | Current Water vs. iShares Canadian HYBrid | Current Water vs. Altagas Cum Red |
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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