Correlation Between CoreShares TotalWldStock and Schroder European

Can any of the company-specific risk be diversified away by investing in both CoreShares TotalWldStock and Schroder European 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 CoreShares TotalWldStock and Schroder European into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CoreShares TotalWldStock ETF and Schroder European Real, you can compare the effects of market volatilities on CoreShares TotalWldStock and Schroder European 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 CoreShares TotalWldStock with a short position of Schroder European. Check out your portfolio center. Please also check ongoing floating volatility patterns of CoreShares TotalWldStock and Schroder European.

Diversification Opportunities for CoreShares TotalWldStock and Schroder European

-0.15

Correlation Coefficient

CoreShares TotalWldStock  Schroder European

Good diversification

The 3 months correlation between CoreShares and Schroder is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding CoreShares TotalWldStock ETF and Schroder European Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schroder European Real and CoreShares TotalWldStock 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 CoreShares TotalWldStock ETF are associated (or correlated) with Schroder European. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schroder European Real has no effect on the direction of CoreShares TotalWldStock i.e., CoreShares TotalWldStock and Schroder European go up and down completely randomly.

Pair Corralation between CoreShares TotalWldStock and Schroder European

If you would invest  149,600  in CoreShares TotalWldStock ETF on October 22, 2024 and sell it today you would earn a total of  11,600  from holding CoreShares TotalWldStock ETF or generate 7.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

CoreShares TotalWldStock ETF  vs.  Schroder European Real

CoreShares TotalWldStock

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CoreShares TotalWldStock ETF are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, CoreShares TotalWldStock may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Schroder European Real

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Schroder European Real has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Schroder European is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with CoreShares TotalWldStock and Schroder European

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

The idea behind CoreShares TotalWldStock ETF and Schroder European Real 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.