Correlation Between Aspira Womens and IShares Global

Can any of the company-specific risk be diversified away by investing in both Aspira Womens and IShares Global 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 Aspira Womens and IShares Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aspira Womens Health and iShares Global Comm, you can compare the effects of market volatilities on Aspira Womens and IShares Global 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 Aspira Womens with a short position of IShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspira Womens and IShares Global.

Diversification Opportunities for Aspira Womens and IShares Global

-0.44

Correlation Coefficient

Aspira Womens  IShares Global

Very good diversification

The 3 months correlation between Aspira and IShares is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Aspira Womens Health and iShares Global Comm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Global Comm and Aspira Womens 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 Aspira Womens Health are associated (or correlated) with IShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Global Comm has no effect on the direction of Aspira Womens i.e., Aspira Womens and IShares Global go up and down completely randomly.

Pair Corralation between Aspira Womens and IShares Global

Considering the 90-day investment horizon Aspira Womens Health is expected to under-perform the IShares Global. In addition to that, Aspira Womens is 9.11 times more volatile than iShares Global Comm. It trades about -0.31 of its total potential returns per unit of risk. iShares Global Comm is currently generating about 0.06 per unit of volatility. If you would invest  9,729  in iShares Global Comm on December 28, 2024 and sell it today you would earn a total of  283.00  from holding iShares Global Comm or generate 2.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Aspira Womens Health  vs.  iShares Global Comm

Aspira Womens Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aspira Womens Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

iShares Global Comm

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Global Comm are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, IShares Global is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Aspira Womens and IShares Global

The main advantage of trading using opposite Aspira Womens and IShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspira Womens position performs unexpectedly, IShares Global 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 Global will offset losses from the drop in IShares Global's long position.

The idea behind Aspira Womens Health and iShares Global Comm pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.