Correlation Between ISEQ 20 and Cboe UK
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By analyzing existing cross correlation between ISEQ 20 Price and Cboe UK Consumer, you can compare the effects of market volatilities on ISEQ 20 and Cboe UK 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 ISEQ 20 with a short position of Cboe UK. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISEQ 20 and Cboe UK.
Diversification Opportunities for ISEQ 20 and Cboe UK
Good diversification
The 3 months correlation between ISEQ and Cboe is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding ISEQ 20 Price and Cboe UK Consumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cboe UK Consumer and ISEQ 20 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 ISEQ 20 Price are associated (or correlated) with Cboe UK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cboe UK Consumer has no effect on the direction of ISEQ 20 i.e., ISEQ 20 and Cboe UK go up and down completely randomly.
Pair Corralation between ISEQ 20 and Cboe UK
Assuming the 90 days trading horizon ISEQ 20 Price is expected to generate 1.18 times more return on investment than Cboe UK. However, ISEQ 20 is 1.18 times more volatile than Cboe UK Consumer. It trades about 0.05 of its potential returns per unit of risk. Cboe UK Consumer is currently generating about -0.14 per unit of risk. If you would invest 164,305 in ISEQ 20 Price on January 30, 2024 and sell it today you would earn a total of 1,142 from holding ISEQ 20 Price or generate 0.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
ISEQ 20 Price vs. Cboe UK Consumer
Performance |
Timeline |
ISEQ 20 and Cboe UK Volatility Contrast
Predicted Return Density |
Returns |
ISEQ 20 Price
Pair trading matchups for ISEQ 20
Cboe UK Consumer
Pair trading matchups for Cboe UK
Pair Trading with ISEQ 20 and Cboe UK
The main advantage of trading using opposite ISEQ 20 and Cboe UK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISEQ 20 position performs unexpectedly, Cboe UK 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 Cboe UK will offset losses from the drop in Cboe UK's long position.ISEQ 20 vs. Dalata Hotel Group | ISEQ 20 vs. Great Western Mining | ISEQ 20 vs. FD Technologies PLC | ISEQ 20 vs. Datalex |
Cboe UK vs. Tata Steel Limited | Cboe UK vs. Hilton Food Group | Cboe UK vs. Edita Food Industries | Cboe UK vs. Impax Environmental Markets |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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