Correlation Between IShares Dividend and Horizon Kinetics

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

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

Diversification Opportunities for IShares Dividend and Horizon Kinetics

0.53

Correlation Coefficient

IShares Dividend  Horizon Kinetics

Very weak diversification

The 3 months correlation between IShares and Horizon is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding iShares Dividend and and Horizon Kinetics SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Kinetics SPAC and IShares Dividend 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 Dividend and are associated (or correlated) with Horizon Kinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Kinetics SPAC has no effect on the direction of IShares Dividend i.e., IShares Dividend and Horizon Kinetics go up and down completely randomly.

Pair Corralation between IShares Dividend and Horizon Kinetics

Given the investment horizon of 90 days iShares Dividend and is expected to generate 0.98 times more return on investment than Horizon Kinetics. However, iShares Dividend and is 1.02 times less risky than Horizon Kinetics. It trades about 0.18 of its potential returns per unit of risk. Horizon Kinetics SPAC is currently generating about 0.03 per unit of risk. If you would invest  4,715  in iShares Dividend and on September 2, 2024 and sell it today you would earn a total of  380.00  from holding iShares Dividend and or generate 8.06% return on investment over 90 days.

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

iShares Dividend and  vs.  Horizon Kinetics SPAC

iShares Dividend

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Dividend and are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, IShares Dividend may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Horizon Kinetics SPAC

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Horizon Kinetics SPAC are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Horizon Kinetics 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 IShares Dividend and Horizon Kinetics

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

The idea behind iShares Dividend and and Horizon Kinetics SPAC 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.