Correlation Between IShares Smart and LG Gerd
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By analyzing existing cross correlation between iShares Smart City and LG Gerd Kommer, you can compare the effects of market volatilities on IShares Smart and LG Gerd 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 Smart with a short position of LG Gerd. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Smart and LG Gerd.
Diversification Opportunities for IShares Smart and LG Gerd
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and GERD is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding iShares Smart City and LG Gerd Kommer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LG Gerd Kommer and IShares Smart 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 Smart City are associated (or correlated) with LG Gerd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LG Gerd Kommer has no effect on the direction of IShares Smart i.e., IShares Smart and LG Gerd go up and down completely randomly.
Pair Corralation between IShares Smart and LG Gerd
Assuming the 90 days trading horizon IShares Smart is expected to generate 1.11 times less return on investment than LG Gerd. In addition to that, IShares Smart is 1.11 times more volatile than LG Gerd Kommer. It trades about 0.08 of its total potential returns per unit of risk. LG Gerd Kommer is currently generating about 0.1 per unit of volatility. If you would invest 920.00 in LG Gerd Kommer on September 23, 2024 and sell it today you would earn a total of 266.00 from holding LG Gerd Kommer or generate 28.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 76.83% |
Values | Daily Returns |
iShares Smart City vs. LG Gerd Kommer
Performance |
Timeline |
iShares Smart City |
LG Gerd Kommer |
IShares Smart and LG Gerd Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares Smart and LG Gerd
The main advantage of trading using opposite IShares Smart and LG Gerd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Smart position performs unexpectedly, LG Gerd 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 LG Gerd will offset losses from the drop in LG Gerd's long position.IShares Smart vs. UBS Fund Solutions | IShares Smart vs. Xtrackers II | IShares Smart vs. Xtrackers Nikkei 225 | IShares Smart vs. iShares VII PLC |
LG Gerd vs. iShares Govt Bond | LG Gerd vs. Amundi MSCI Europe | LG Gerd vs. iShares Global AAA AA | LG Gerd vs. iShares Smart City |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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