Correlation Between Leverage Shares and IShares Treasury
Can any of the company-specific risk be diversified away by investing in both Leverage Shares and IShares Treasury 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 Leverage Shares and IShares Treasury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leverage Shares 2x and iShares Treasury Bond, you can compare the effects of market volatilities on Leverage Shares and IShares Treasury 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 Leverage Shares with a short position of IShares Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leverage Shares and IShares Treasury.
Diversification Opportunities for Leverage Shares and IShares Treasury
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Leverage and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Leverage Shares 2x and iShares Treasury Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Treasury Bond and Leverage Shares 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 Leverage Shares 2x are associated (or correlated) with IShares Treasury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Treasury Bond has no effect on the direction of Leverage Shares i.e., Leverage Shares and IShares Treasury go up and down completely randomly.
Pair Corralation between Leverage Shares and IShares Treasury
If you would invest (100.00) in iShares Treasury Bond on November 8, 2024 and sell it today you would earn a total of 100.00 from holding iShares Treasury Bond or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Leverage Shares 2x vs. iShares Treasury Bond
Performance |
| Timeline |
| Leverage Shares 2x |
| iShares Treasury Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Leverage Shares and IShares Treasury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leverage Shares and IShares Treasury
The main advantage of trading using opposite Leverage Shares and IShares Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leverage Shares position performs unexpectedly, IShares Treasury 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 Treasury will offset losses from the drop in IShares Treasury's long position.| Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. Leverage Shares 3x |
| IShares Treasury vs. iShares MSCI Japan | IShares Treasury vs. iShares JP Morgan | IShares Treasury vs. iShares MSCI Europe | IShares Treasury vs. iShares Nasdaq Biotechnology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |