Correlation Between IShares Core and CornerCap Fundametrics

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

By analyzing existing cross correlation between iShares Core Dividend and CornerCap Fundametrics Large Cap, you can compare the effects of market volatilities on IShares Core and CornerCap Fundametrics 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 Core with a short position of CornerCap Fundametrics. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and CornerCap Fundametrics.

Diversification Opportunities for IShares Core and CornerCap Fundametrics

0.73

Correlation Coefficient

IShares Core  CornerCap Fundametrics

Poor diversification

The 3 months correlation between IShares and CornerCap is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core Dividend and CornerCap Fundametrics Large C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CornerCap Fundametrics and IShares Core 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 Core Dividend are associated (or correlated) with CornerCap Fundametrics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CornerCap Fundametrics has no effect on the direction of IShares Core i.e., IShares Core and CornerCap Fundametrics go up and down completely randomly.

Pair Corralation between IShares Core and CornerCap Fundametrics

Given the investment horizon of 90 days IShares Core is expected to generate 1.73 times less return on investment than CornerCap Fundametrics. But when comparing it to its historical volatility, iShares Core Dividend is 1.13 times less risky than CornerCap Fundametrics. It trades about 0.12 of its potential returns per unit of risk. CornerCap Fundametrics Large Cap is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  4,128  in CornerCap Fundametrics Large Cap on August 30, 2024 and sell it today you would earn a total of  352.00  from holding CornerCap Fundametrics Large Cap or generate 8.53% return on investment over 90 days.

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

iShares Core Dividend  vs.  CornerCap Fundametrics Large C

iShares Core Dividend

Risk-Adjusted Performance

9 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Core Dividend are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, IShares Core is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

CornerCap Fundametrics

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CornerCap Fundametrics Large Cap are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, CornerCap Fundametrics may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with IShares Core and CornerCap Fundametrics

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

The idea behind iShares Core Dividend and CornerCap Fundametrics Large Cap 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.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.