Correlation Between IShares Canadian and Postmedia Network
Can any of the company-specific risk be diversified away by investing in both IShares Canadian and Postmedia Network 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 Postmedia Network 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 Postmedia Network Canada, you can compare the effects of market volatilities on IShares Canadian and Postmedia Network 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 Postmedia Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and Postmedia Network.
Diversification Opportunities for IShares Canadian and Postmedia Network
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and Postmedia is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian HYBrid and Postmedia Network Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postmedia Network Canada 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 Postmedia Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postmedia Network Canada has no effect on the direction of IShares Canadian i.e., IShares Canadian and Postmedia Network go up and down completely randomly.
Pair Corralation between IShares Canadian and Postmedia Network
Assuming the 90 days trading horizon IShares Canadian is expected to generate 2.44 times less return on investment than Postmedia Network. But when comparing it to its historical volatility, iShares Canadian HYBrid is 14.59 times less risky than Postmedia Network. It trades about 0.12 of its potential returns per unit of risk. Postmedia Network Canada is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 144.00 in Postmedia Network Canada on October 5, 2024 and sell it today you would lose (20.00) from holding Postmedia Network Canada or give up 13.89% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
iShares Canadian HYBrid vs. Postmedia Network Canada
Performance |
Timeline |
iShares Canadian HYBrid |
Postmedia Network Canada |
IShares Canadian and Postmedia Network Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares Canadian and Postmedia Network
The main advantage of trading using opposite IShares Canadian and Postmedia Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian position performs unexpectedly, Postmedia Network 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 Postmedia Network will offset losses from the drop in Postmedia Network's long position.IShares Canadian vs. iShares IG Corporate | IShares Canadian vs. iShares High Yield | IShares Canadian vs. iShares Floating Rate | IShares Canadian vs. iShares JP Morgan |
Postmedia Network vs. Apple Inc CDR | Postmedia Network vs. Berkshire Hathaway CDR | Postmedia Network vs. Microsoft Corp CDR | Postmedia Network vs. Alphabet Inc CDR |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Positions Ratings 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 | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |