Correlation Between IShares Canadian and Ether Fund
Can any of the company-specific risk be diversified away by investing in both IShares Canadian and Ether Fund 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 Canadian and Ether Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Canadian Universe and Ether Fund, you can compare the effects of market volatilities on IShares Canadian and Ether Fund 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 Canadian with a short position of Ether Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and Ether Fund.
Diversification Opportunities for IShares Canadian and Ether Fund
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and Ether is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian Universe and Ether Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ether Fund and IShares Canadian 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 Canadian Universe are associated (or correlated) with Ether Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ether Fund has no effect on the direction of IShares Canadian i.e., IShares Canadian and Ether Fund go up and down completely randomly.
Pair Corralation between IShares Canadian and Ether Fund
Assuming the 90 days trading horizon IShares Canadian is expected to generate 26.57 times less return on investment than Ether Fund. But when comparing it to its historical volatility, iShares Canadian Universe is 31.2 times less risky than Ether Fund. It trades about 0.09 of its potential returns per unit of risk. Ether Fund is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,570 in Ether Fund on September 26, 2024 and sell it today you would earn a total of 2,777 from holding Ether Fund or generate 108.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.68% |
Values | Daily Returns |
iShares Canadian Universe vs. Ether Fund
Performance |
Timeline |
iShares Canadian Universe |
Ether Fund |
IShares Canadian and Ether Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares Canadian and Ether Fund
The main advantage of trading using opposite IShares Canadian and Ether Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian position performs unexpectedly, Ether Fund 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 Ether Fund will offset losses from the drop in Ether Fund's long position.IShares Canadian vs. iShares Core Canadian | IShares Canadian vs. iShares Core Canadian | IShares Canadian vs. iShares Canadian Real | IShares Canadian vs. iShares Canadian Value |
Ether Fund vs. iShares SPTSX 60 | Ether Fund vs. iShares Core SP | Ether Fund vs. iShares Core SPTSX | Ether Fund vs. BMO Aggregate Bond |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |