Correlation Between IShares International and Quaker Investment

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

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

Diversification Opportunities for IShares International and Quaker Investment

0.0

Correlation Coefficient

IShares International  Quaker Investment

Pay attention - limited upside

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

Pair Corralation between IShares International and Quaker Investment

If you would invest  0.00  in Quaker Investment Trust on March 28, 2024 and sell it today you would earn a total of  0.00  from holding Quaker Investment Trust or generate 0.0% return on investment over 90 days.

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

iShares International Treasury  vs.  Quaker Investment Trust

iShares International

Risk-Adjusted Performance

0 of 100

Very Weak

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

Quaker Investment Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quaker Investment Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Quaker Investment is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with IShares International and Quaker Investment

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

The idea behind iShares International Treasury and Quaker Investment 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.