Correlation Between IShares JPX and IShares Smart
Can any of the company-specific risk be diversified away by investing in both IShares JPX and IShares Smart 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 JPX and IShares Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IShares JPX Nikkei 400 and iShares Smart City, you can compare the effects of market volatilities on IShares JPX and IShares Smart 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 JPX with a short position of IShares Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares JPX and IShares Smart.
Diversification Opportunities for IShares JPX and IShares Smart
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IShares JPX Nikkei 400 and iShares Smart City in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Smart City and IShares JPX 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 JPX Nikkei 400 are associated (or correlated) with IShares Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Smart City has no effect on the direction of IShares JPX i.e., IShares JPX and IShares Smart go up and down completely randomly.
Pair Corralation between IShares JPX and IShares Smart
If you would invest 614.00 in iShares Smart City on August 31, 2024 and sell it today you would earn a total of 143.00 from holding iShares Smart City or generate 23.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
IShares JPX Nikkei 400 vs. iShares Smart City
Performance |
| Timeline |
| IShares JPX Nikkei |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares Smart City |
IShares JPX and IShares Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares JPX and IShares Smart
The main advantage of trading using opposite IShares JPX and IShares Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares JPX position performs unexpectedly, IShares Smart 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 IShares Smart will offset losses from the drop in IShares Smart's long position.| IShares JPX vs. iShares Govt Bond | IShares JPX vs. iShares Global AAA AA | IShares JPX vs. iShares Smart City | IShares JPX vs. iShares Broad High |
| IShares Smart vs. iShares Govt Bond | IShares Smart vs. iShares Global AAA AA | IShares Smart vs. iShares Broad High | IShares Smart vs. iShares Emerging 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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