Correlation Between Lite Access and IShares Fundamental

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

By analyzing existing cross correlation between Lite Access Technologies and iShares Fundamental Hedged, you can compare the effects of market volatilities on Lite Access and IShares Fundamental 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 Lite Access with a short position of IShares Fundamental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lite Access and IShares Fundamental.

Diversification Opportunities for Lite Access and IShares Fundamental

0.0

Correlation Coefficient

Lite Access  IShares Fundamental

Pay attention - limited upside

The 3 months correlation between Lite and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lite Access Technologies and iShares Fundamental Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Fundamental and Lite Access 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 Lite Access Technologies are associated (or correlated) with IShares Fundamental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Fundamental has no effect on the direction of Lite Access i.e., Lite Access and IShares Fundamental go up and down completely randomly.

Pair Corralation between Lite Access and IShares Fundamental

If you would invest  5,576  in iShares Fundamental Hedged on September 16, 2024 and sell it today you would earn a total of  22.00  from holding iShares Fundamental Hedged or generate 0.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Lite Access Technologies  vs.  iShares Fundamental Hedged

Lite Access Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lite Access Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Lite Access is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

iShares Fundamental

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Fundamental Hedged are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, IShares Fundamental is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Lite Access and IShares Fundamental

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

The idea behind Lite Access Technologies and iShares Fundamental Hedged 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.