Correlation Between IShares Canadian and Scottie Resources
Can any of the company-specific risk be diversified away by investing in both IShares Canadian and Scottie Resources 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 Scottie Resources 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 Scottie Resources Corp, you can compare the effects of market volatilities on IShares Canadian and Scottie Resources 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 Scottie Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Canadian and Scottie Resources.
Diversification Opportunities for IShares Canadian and Scottie Resources
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Scottie is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding iShares Canadian HYBrid and Scottie Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scottie Resources 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 Scottie Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scottie Resources Corp has no effect on the direction of IShares Canadian i.e., IShares Canadian and Scottie Resources go up and down completely randomly.
Pair Corralation between IShares Canadian and Scottie Resources
Assuming the 90 days trading horizon IShares Canadian is expected to generate 4.55 times less return on investment than Scottie Resources. But when comparing it to its historical volatility, iShares Canadian HYBrid is 20.92 times less risky than Scottie Resources. It trades about 0.15 of its potential returns per unit of risk. Scottie Resources Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 96.00 in Scottie Resources Corp on September 6, 2024 and sell it today you would earn a total of 2.00 from holding Scottie Resources Corp or generate 2.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
iShares Canadian HYBrid vs. Scottie Resources Corp
Performance |
Timeline |
iShares Canadian HYBrid |
Scottie Resources Corp |
IShares Canadian and Scottie Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares Canadian and Scottie Resources
The main advantage of trading using opposite IShares Canadian and Scottie Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Canadian position performs unexpectedly, Scottie Resources 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 Scottie Resources will offset losses from the drop in Scottie Resources' 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 |
Scottie Resources vs. Precipitate Gold Corp | Scottie Resources vs. Libero Copper Corp | Scottie Resources vs. Chakana Copper Corp | Scottie Resources vs. ROKMASTER Resources Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |