Correlation Between IShares SPTSX and Qyou Media

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

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

Diversification Opportunities for IShares SPTSX and Qyou Media

-0.26

Correlation Coefficient

IShares SPTSX  Qyou Media

Very good diversification

The 3 months correlation between IShares and Qyou is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding iShares SPTSX Capped and Qyou Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qyou Media and IShares SPTSX 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 SPTSX Capped are associated (or correlated) with Qyou Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qyou Media has no effect on the direction of IShares SPTSX i.e., IShares SPTSX and Qyou Media go up and down completely randomly.

Pair Corralation between IShares SPTSX and Qyou Media

Assuming the 90 days trading horizon iShares SPTSX Capped is expected to under-perform the Qyou Media. But the etf apears to be less risky and, when comparing its historical volatility, iShares SPTSX Capped is 6.54 times less risky than Qyou Media. The etf trades about -0.1 of its potential returns per unit of risk. The Qyou Media is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  3.50  in Qyou Media on December 4, 2024 and sell it today you would earn a total of  0.50  from holding Qyou Media or generate 14.29% return on investment over 90 days.

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

iShares SPTSX Capped  vs.  Qyou Media

iShares SPTSX Capped

Risk-Adjusted Performance

Very Weak

Over the last 90 days iShares SPTSX Capped has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Etf's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

Qyou Media

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Qyou Media are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Qyou Media showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IShares SPTSX and Qyou Media

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

The idea behind iShares SPTSX Capped and Qyou Media 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.