Correlation Between IShares Silver and Canada Goose

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

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

Diversification Opportunities for IShares Silver and Canada Goose

0.14

Correlation Coefficient

IShares Silver  Canada Goose

Average diversification

The 3 months correlation between IShares and Canada is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding iShares Silver Bullion and Canada Goose Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canada Goose Holdings and IShares Silver 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 Silver Bullion are associated (or correlated) with Canada Goose. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canada Goose Holdings has no effect on the direction of IShares Silver i.e., IShares Silver and Canada Goose go up and down completely randomly.

Pair Corralation between IShares Silver and Canada Goose

Assuming the 90 days trading horizon iShares Silver Bullion is expected to under-perform the Canada Goose. But the etf apears to be less risky and, when comparing its historical volatility, iShares Silver Bullion is 1.39 times less risky than Canada Goose. The etf trades about -0.04 of its potential returns per unit of risk. The Canada Goose Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  1,430  in Canada Goose Holdings on September 20, 2024 and sell it today you would lose (7.00) from holding Canada Goose Holdings or give up 0.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

iShares Silver Bullion  vs.  Canada Goose Holdings

iShares Silver Bullion

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iShares Silver Bullion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, IShares Silver is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Canada Goose Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Canada Goose Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Canada Goose is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with IShares Silver and Canada Goose

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

The idea behind iShares Silver Bullion and Canada Goose Holdings 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.