Correlation Between IShares Canadian and UPS CDR
Can any of the company-specific risk be diversified away by investing in both IShares Canadian and UPS CDR 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 UPS CDR 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 UPS CDR, you can compare the effects of market volatilities on IShares Canadian and UPS CDR 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 UPS CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and UPS CDR.
Diversification Opportunities for IShares Canadian and UPS CDR
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and UPS is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian HYBrid and UPS CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UPS CDR 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 UPS CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UPS CDR has no effect on the direction of IShares Canadian i.e., IShares Canadian and UPS CDR go up and down completely randomly.
Pair Corralation between IShares Canadian and UPS CDR
Assuming the 90 days trading horizon iShares Canadian HYBrid is expected to generate 0.13 times more return on investment than UPS CDR. However, iShares Canadian HYBrid is 7.65 times less risky than UPS CDR. It trades about 0.13 of its potential returns per unit of risk. UPS CDR is currently generating about -0.08 per unit of risk. If you would invest 1,953 in iShares Canadian HYBrid on December 2, 2024 and sell it today you would earn a total of 45.00 from holding iShares Canadian HYBrid or generate 2.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
iShares Canadian HYBrid vs. UPS CDR
Performance |
Timeline |
iShares Canadian HYBrid |
UPS CDR |
IShares Canadian and UPS CDR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares Canadian and UPS CDR
The main advantage of trading using opposite IShares Canadian and UPS CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian position performs unexpectedly, UPS CDR 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 UPS CDR will offset losses from the drop in UPS CDR'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 |
UPS CDR vs. Westshore Terminals Investment | UPS CDR vs. Maple Leaf Foods | UPS CDR vs. Queens Road Capital | UPS CDR vs. Broadcom |
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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