Correlation Between IShares Canadian and IShares Flexible
Can any of the company-specific risk be diversified away by investing in both IShares Canadian and IShares Flexible 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 IShares Flexible 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 iShares Flexible Monthly, you can compare the effects of market volatilities on IShares Canadian and IShares Flexible 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 IShares Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and IShares Flexible.
Diversification Opportunities for IShares Canadian and IShares Flexible
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and IShares is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian HYBrid and iShares Flexible Monthly in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Flexible Monthly 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 IShares Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Flexible Monthly has no effect on the direction of IShares Canadian i.e., IShares Canadian and IShares Flexible go up and down completely randomly.
Pair Corralation between IShares Canadian and IShares Flexible
Assuming the 90 days trading horizon iShares Canadian HYBrid is expected to generate 2.02 times more return on investment than IShares Flexible. However, IShares Canadian is 2.02 times more volatile than iShares Flexible Monthly. It trades about 0.11 of its potential returns per unit of risk. iShares Flexible Monthly is currently generating about -0.06 per unit of risk. If you would invest 1,724 in iShares Canadian HYBrid on August 26, 2024 and sell it today you would earn a total of 230.00 from holding iShares Canadian HYBrid or generate 13.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 10.57% |
| Values | Daily Returns |
iShares Canadian HYBrid vs. iShares Flexible Monthly
Performance |
| Timeline |
| iShares Canadian HYBrid |
| iShares Flexible Monthly |
IShares Canadian and IShares Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Canadian and IShares Flexible
The main advantage of trading using opposite IShares Canadian and IShares Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian position performs unexpectedly, IShares Flexible 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 IShares Flexible will offset losses from the drop in IShares Flexible'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 |
| IShares Flexible vs. BMO Aggregate Bond | IShares Flexible vs. iShares Canadian HYBrid | IShares Flexible vs. Brompton European Dividend | IShares Flexible vs. Solar Alliance Energy |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges |