Correlation Between Wealthsimple Shariah and Eagle Mid
Can any of the company-specific risk be diversified away by investing in both Wealthsimple Shariah and Eagle Mid 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 Eagle Mid 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 Eagle Mid Cap, you can compare the effects of market volatilities on Wealthsimple Shariah and Eagle Mid 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 Eagle Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wealthsimple Shariah and Eagle Mid.
Diversification Opportunities for Wealthsimple Shariah and Eagle Mid
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Wealthsimple and Eagle is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Wealthsimple Shariah World and Eagle Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mid Cap 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 Eagle Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mid Cap has no effect on the direction of Wealthsimple Shariah i.e., Wealthsimple Shariah and Eagle Mid go up and down completely randomly.
Pair Corralation between Wealthsimple Shariah and Eagle Mid
Assuming the 90 days trading horizon Wealthsimple Shariah World is expected to generate 0.7 times more return on investment than Eagle Mid. However, Wealthsimple Shariah World is 1.43 times less risky than Eagle Mid. It trades about 0.02 of its potential returns per unit of risk. Eagle Mid Cap is currently generating about -0.09 per unit of risk. If you would invest 3,204 in Wealthsimple Shariah World on August 26, 2025 and sell it today you would earn a total of 23.00 from holding Wealthsimple Shariah World or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Wealthsimple Shariah World vs. Eagle Mid Cap
Performance |
| Timeline |
| Wealthsimple Shariah |
| Eagle Mid Cap |
Wealthsimple Shariah and Eagle Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wealthsimple Shariah and Eagle Mid
The main advantage of trading using opposite Wealthsimple Shariah and Eagle Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wealthsimple Shariah position performs unexpectedly, Eagle Mid 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 Eagle Mid will offset losses from the drop in Eagle Mid's 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 |
| Eagle Mid vs. Prudential Real Estate | Eagle Mid vs. Great West Real Estate | Eagle Mid vs. Short Real Estate | Eagle Mid vs. Aew Real Estate |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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