Correlation Between Trisul SA and IShares Trust

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

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

Diversification Opportunities for Trisul SA and IShares Trust

0.16

Correlation Coefficient

Trisul SA  IShares Trust

Average diversification

The 3 months correlation between Trisul and IShares is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Trisul SA and iShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Trust and Trisul SA 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 Trisul SA are associated (or correlated) with IShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Trust has no effect on the direction of Trisul SA i.e., Trisul SA and IShares Trust go up and down completely randomly.

Pair Corralation between Trisul SA and IShares Trust

Assuming the 90 days trading horizon Trisul SA is expected to generate 1.12 times less return on investment than IShares Trust. In addition to that, Trisul SA is 1.13 times more volatile than iShares Trust . It trades about 0.04 of its total potential returns per unit of risk. iShares Trust is currently generating about 0.05 per unit of volatility. If you would invest  4,224  in iShares Trust on September 28, 2024 and sell it today you would earn a total of  1,920  from holding iShares Trust or generate 45.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	90.16%
Values	Daily Returns

Trisul SA  vs.  iShares Trust

Trisul SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Trisul SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

iShares Trust

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Trust are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, IShares Trust may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Trisul SA and IShares Trust

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

The idea behind Trisul SA and iShares Trust 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.