Correlation Between Wealthsimple Shariah and Equitable Holdings
Can any of the company-specific risk be diversified away by investing in both Wealthsimple Shariah and Equitable Holdings 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 Wealthsimple Shariah and Equitable Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wealthsimple Shariah World and Equitable Holdings, you can compare the effects of market volatilities on Wealthsimple Shariah and Equitable Holdings 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 Wealthsimple Shariah with a short position of Equitable Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wealthsimple Shariah and Equitable Holdings.
Diversification Opportunities for Wealthsimple Shariah and Equitable Holdings
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Wealthsimple and Equitable is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Wealthsimple Shariah World and Equitable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable Holdings and Wealthsimple Shariah 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 Wealthsimple Shariah World are associated (or correlated) with Equitable Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Holdings has no effect on the direction of Wealthsimple Shariah i.e., Wealthsimple Shariah and Equitable Holdings go up and down completely randomly.
Pair Corralation between Wealthsimple Shariah and Equitable Holdings
Assuming the 90 days trading horizon Wealthsimple Shariah World is expected to generate 1.3 times more return on investment than Equitable Holdings. However, Wealthsimple Shariah is 1.3 times more volatile than Equitable Holdings. It trades about 0.05 of its potential returns per unit of risk. Equitable Holdings is currently generating about -0.17 per unit of risk. If you would invest 3,198 in Wealthsimple Shariah World on August 27, 2025 and sell it today you would earn a total of 70.00 from holding Wealthsimple Shariah World or generate 2.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Wealthsimple Shariah World vs. Equitable Holdings
Performance |
| Timeline |
| Wealthsimple Shariah |
| Equitable Holdings |
Wealthsimple Shariah and Equitable Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wealthsimple Shariah and Equitable Holdings
The main advantage of trading using opposite Wealthsimple Shariah and Equitable Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wealthsimple Shariah position performs unexpectedly, Equitable Holdings 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 Equitable Holdings will offset losses from the drop in Equitable Holdings' long position.| Wealthsimple Shariah vs. Wealthsimple North America | Wealthsimple Shariah vs. Wealthsimple Developed Markets | Wealthsimple Shariah vs. Wealthsimple North American | Wealthsimple Shariah vs. NBI High Yield |
| Equitable Holdings vs. Hat Trick Beverage | Equitable Holdings vs. GameStop Corp | Equitable Holdings vs. High Performance Beverages | Equitable Holdings vs. Tsingtao Brewery |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |