Correlation Between IShares Canadian and Boat Rocker

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both IShares Canadian and Boat Rocker 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 Boat Rocker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Canadian HYBrid and Boat Rocker Media, you can compare the effects of market volatilities on IShares Canadian and Boat Rocker 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 Boat Rocker. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and Boat Rocker.

Diversification Opportunities for IShares Canadian and Boat Rocker

-0.77
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between IShares and Boat is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian HYBrid and Boat Rocker Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boat Rocker Media 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 HYBrid are associated (or correlated) with Boat Rocker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boat Rocker Media has no effect on the direction of IShares Canadian i.e., IShares Canadian and Boat Rocker go up and down completely randomly.

Pair Corralation between IShares Canadian and Boat Rocker

Assuming the 90 days trading horizon iShares Canadian HYBrid is expected to generate 0.05 times more return on investment than Boat Rocker. However, iShares Canadian HYBrid is 21.55 times less risky than Boat Rocker. It trades about -0.03 of its potential returns per unit of risk. Boat Rocker Media is currently generating about -0.1 per unit of risk. If you would invest  1,984  in iShares Canadian HYBrid on October 5, 2024 and sell it today you would lose (3.00) from holding iShares Canadian HYBrid or give up 0.15% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

iShares Canadian HYBrid  vs.  Boat Rocker Media

 Performance 
       Timeline  
iShares Canadian HYBrid 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in iShares Canadian HYBrid are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental drivers, IShares Canadian is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
Boat Rocker Media 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Boat Rocker Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

IShares Canadian and Boat Rocker Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with IShares Canadian and Boat Rocker

The main advantage of trading using opposite IShares Canadian and Boat Rocker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian position performs unexpectedly, Boat Rocker 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 Boat Rocker will offset losses from the drop in Boat Rocker's long position.
The idea behind iShares Canadian HYBrid and Boat Rocker 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Equity Valuation
Check real value of public entities based on technical and fundamental data
Money Managers
Screen money managers from public funds and ETFs managed around the world
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation