Correlation Between IShares Canadian and TNR Gold
Can any of the company-specific risk be diversified away by investing in both IShares Canadian and TNR Gold 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 TNR Gold 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 TNR Gold Corp, you can compare the effects of market volatilities on IShares Canadian and TNR Gold 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 TNR Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and TNR Gold.
Diversification Opportunities for IShares Canadian and TNR Gold
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and TNR is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian HYBrid and TNR Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TNR Gold Corp 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 TNR Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TNR Gold Corp has no effect on the direction of IShares Canadian i.e., IShares Canadian and TNR Gold go up and down completely randomly.
Pair Corralation between IShares Canadian and TNR Gold
Assuming the 90 days trading horizon iShares Canadian HYBrid is expected to generate 0.05 times more return on investment than TNR Gold. However, iShares Canadian HYBrid is 21.11 times less risky than TNR Gold. It trades about -0.09 of its potential returns per unit of risk. TNR Gold Corp is currently generating about -0.11 per unit of risk. If you would invest 1,990 in iShares Canadian HYBrid on October 9, 2024 and sell it today you would lose (7.00) from holding iShares Canadian HYBrid or give up 0.35% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
iShares Canadian HYBrid vs. TNR Gold Corp
Performance |
Timeline |
iShares Canadian HYBrid |
TNR Gold Corp |
IShares Canadian and TNR Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares Canadian and TNR Gold
The main advantage of trading using opposite IShares Canadian and TNR Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian position performs unexpectedly, TNR Gold 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 TNR Gold will offset losses from the drop in TNR Gold'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 |
TNR Gold vs. Fremont Gold | TNR Gold vs. iShares Canadian HYBrid | TNR Gold vs. Altagas Cum Red | TNR Gold vs. European Residential Real |
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.
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