Correlation Between IShares SPTSX and Flaherty Crumrine

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

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

Diversification Opportunities for IShares SPTSX and Flaherty Crumrine

0.0

Correlation Coefficient

IShares SPTSX  Flaherty Crumrine

Pay attention - limited upside

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

Pair Corralation between IShares SPTSX and Flaherty Crumrine

If you would invest  1,446  in iShares SPTSX Capped on September 29, 2024 and sell it today you would earn a total of  55.00  from holding iShares SPTSX Capped or generate 3.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

iShares SPTSX Capped  vs.  Flaherty Crumrine Investment

iShares SPTSX Capped

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iShares SPTSX Capped has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Etf's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Flaherty Crumrine

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Flaherty Crumrine Investment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, Flaherty Crumrine is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with IShares SPTSX and Flaherty Crumrine

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

The idea behind iShares SPTSX Capped and Flaherty Crumrine Investment 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.