Correlation Between IShares Core and Jungfraubahn Holding

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

By analyzing existing cross correlation between iShares Core SP and Jungfraubahn Holding AG, you can compare the effects of market volatilities on IShares Core and Jungfraubahn Holding 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 Core with a short position of Jungfraubahn Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Jungfraubahn Holding.

Diversification Opportunities for IShares Core and Jungfraubahn Holding

-0.23

Correlation Coefficient

IShares Core  Jungfraubahn Holding

Very good diversification

The 3 months correlation between IShares and Jungfraubahn is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and Jungfraubahn Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jungfraubahn Holding and IShares Core 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 Core SP are associated (or correlated) with Jungfraubahn Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jungfraubahn Holding has no effect on the direction of IShares Core i.e., IShares Core and Jungfraubahn Holding go up and down completely randomly.

Pair Corralation between IShares Core and Jungfraubahn Holding

Assuming the 90 days trading horizon iShares Core SP is expected to under-perform the Jungfraubahn Holding. But the etf apears to be less risky and, when comparing its historical volatility, iShares Core SP is 1.3 times less risky than Jungfraubahn Holding. The etf trades about -0.08 of its potential returns per unit of risk. The Jungfraubahn Holding AG is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  17,400  in Jungfraubahn Holding AG on December 30, 2024 and sell it today you would earn a total of  1,680  from holding Jungfraubahn Holding AG or generate 9.66% return on investment over 90 days.

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

iShares Core SP  vs.  Jungfraubahn Holding AG

iShares Core SP

Risk-Adjusted Performance

Very Weak

Over the last 90 days iShares Core SP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, IShares Core is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Jungfraubahn Holding

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jungfraubahn Holding AG are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Jungfraubahn Holding may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with IShares Core and Jungfraubahn Holding

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

The idea behind iShares Core SP and Jungfraubahn Holding AG 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .