Correlation Between BSAE and IShares JP
Can any of the company-specific risk be diversified away by investing in both BSAE and IShares JP 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 BSAE and IShares JP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BSAE and iShares JP Morgan, you can compare the effects of market volatilities on BSAE and IShares JP 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 BSAE with a short position of IShares JP. Check out your portfolio center. Please also check ongoing floating volatility patterns of BSAE and IShares JP.
Diversification Opportunities for BSAE and IShares JP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BSAE and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BSAE and iShares JP Morgan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares JP Morgan and BSAE 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 BSAE are associated (or correlated) with IShares JP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares JP Morgan has no effect on the direction of BSAE i.e., BSAE and IShares JP go up and down completely randomly.
Pair Corralation between BSAE and IShares JP
If you would invest (100.00) in BSAE on January 20, 2024 and sell it today you would earn a total of 100.00 from holding BSAE or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BSAE vs. iShares JP Morgan
Performance |
| Timeline |
| BSAE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares JP Morgan |
BSAE and IShares JP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BSAE and IShares JP
The main advantage of trading using opposite BSAE and IShares JP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BSAE position performs unexpectedly, IShares JP 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 JP will offset losses from the drop in IShares JP's long position.| BSAE vs. SPDR SSGA Fixed | BSAE vs. SPDR Series Trust | BSAE vs. SSGA Active Trust | BSAE vs. SPDR DoubleLine Short |
| IShares JP vs. SPDR SSGA Fixed | IShares JP vs. SPDR Series Trust | IShares JP vs. SSGA Active Trust | IShares JP vs. SPDR DoubleLine Short |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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