Correlation Between IShares Global and HANetf ICAV

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

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

Diversification Opportunities for IShares Global and HANetf ICAV

-0.86

Correlation Coefficient

IShares Global  HANetf ICAV

Pay attention - limited upside

The 3 months correlation between IShares and HANetf is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Clean and HANetf ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANetf ICAV and IShares Global 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 Global Clean are associated (or correlated) with HANetf ICAV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANetf ICAV has no effect on the direction of IShares Global i.e., IShares Global and HANetf ICAV go up and down completely randomly.

Pair Corralation between IShares Global and HANetf ICAV

Assuming the 90 days trading horizon iShares Global Clean is expected to under-perform the HANetf ICAV. But the etf apears to be less risky and, when comparing its historical volatility, iShares Global Clean is 1.01 times less risky than HANetf ICAV. The etf trades about -0.07 of its potential returns per unit of risk. The HANetf ICAV is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  868.00  in HANetf ICAV on October 4, 2024 and sell it today you would earn a total of  544.00  from holding HANetf ICAV or generate 62.67% return on investment over 90 days.

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

iShares Global Clean  vs.  HANetf ICAV

iShares Global Clean

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iShares Global Clean has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Etf's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the Exchange Traded Fund stockholders.

HANetf ICAV

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in HANetf ICAV are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward-looking signals, HANetf ICAV reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IShares Global and HANetf ICAV

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

The idea behind iShares Global Clean and HANetf ICAV 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.

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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.