Correlation Between IShares and Seluxit AS

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

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

Diversification Opportunities for IShares and Seluxit AS

0.0

Correlation Coefficient

IShares  Seluxit AS

Pay attention - limited upside

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

Pair Corralation between IShares and Seluxit AS

If you would invest  351.00  in Seluxit AS on January 26, 2024 and sell it today you would lose (1.00) from holding Seluxit AS or give up 0.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

IShares  vs.  Seluxit AS

IShares

Risk-Adjusted Performance

0 of 100

Very Weak

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

Seluxit AS

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Seluxit AS are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Seluxit AS exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IShares and Seluxit AS

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

The idea behind IShares and Seluxit AS 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 CEOs Directory module to screen CEOs from public companies around the world.