Correlation Between IShares Core and Spinnaker ETF
Can any of the company-specific risk be diversified away by investing in both IShares Core and Spinnaker ETF 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 Core and Spinnaker ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core Aggregate and Spinnaker ETF Series, you can compare the effects of market volatilities on IShares Core and Spinnaker ETF 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 Core with a short position of Spinnaker ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Spinnaker ETF.
Diversification Opportunities for IShares Core and Spinnaker ETF
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Spinnaker is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core Aggregate and Spinnaker ETF Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spinnaker ETF Series and IShares Core 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 Core Aggregate are associated (or correlated) with Spinnaker ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spinnaker ETF Series has no effect on the direction of IShares Core i.e., IShares Core and Spinnaker ETF go up and down completely randomly.
Pair Corralation between IShares Core and Spinnaker ETF
Considering the 90-day investment horizon iShares Core Aggregate is expected to generate 1.55 times more return on investment than Spinnaker ETF. However, IShares Core is 1.55 times more volatile than Spinnaker ETF Series. It trades about 0.14 of its potential returns per unit of risk. Spinnaker ETF Series is currently generating about 0.04 per unit of risk. If you would invest 9,811 in iShares Core Aggregate on September 1, 2024 and sell it today you would earn a total of 109.00 from holding iShares Core Aggregate or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
iShares Core Aggregate vs. Spinnaker ETF Series
Performance |
| Timeline |
| iShares Core Aggregate |
| Spinnaker ETF Series |
IShares Core and Spinnaker ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Spinnaker ETF
The main advantage of trading using opposite IShares Core and Spinnaker ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, Spinnaker ETF 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 Spinnaker ETF will offset losses from the drop in Spinnaker ETF's long position.| IShares Core vs. iShares MSCI EAFE | IShares Core vs. iShares iBoxx Investment | IShares Core vs. iShares TIPS Bond | IShares Core vs. iShares 1 3 Year |
| Spinnaker ETF vs. Schwab International Equity | Spinnaker ETF vs. Schwab Emerging Markets | Spinnaker ETF vs. Schwab Short Term Treasury | Spinnaker ETF vs. Schwab TIPS ETF |
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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