Correlation Between Themes Silver and IShares Silver
Can any of the company-specific risk be diversified away by investing in both Themes Silver and IShares Silver 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 Themes Silver and IShares Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Themes Silver Miners and iShares Silver Trust, you can compare the effects of market volatilities on Themes Silver and IShares Silver 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 Themes Silver with a short position of IShares Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Themes Silver and IShares Silver.
Diversification Opportunities for Themes Silver and IShares Silver
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Themes and IShares is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Themes Silver Miners and iShares Silver Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Silver Trust and Themes Silver 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 Themes Silver Miners are associated (or correlated) with IShares Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Silver Trust has no effect on the direction of Themes Silver i.e., Themes Silver and IShares Silver go up and down completely randomly.
Pair Corralation between Themes Silver and IShares Silver
Given the investment horizon of 90 days Themes Silver Miners is expected to under-perform the IShares Silver. In addition to that, Themes Silver is 1.11 times more volatile than iShares Silver Trust. It trades about -0.29 of its total potential returns per unit of risk. iShares Silver Trust is currently generating about -0.19 per unit of volatility. If you would invest 3,073 in iShares Silver Trust on August 27, 2024 and sell it today you would lose (226.00) from holding iShares Silver Trust or give up 7.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Themes Silver Miners vs. iShares Silver Trust
Performance |
| Timeline |
| Themes Silver Miners |
| iShares Silver Trust |
Themes Silver and IShares Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Themes Silver and IShares Silver
The main advantage of trading using opposite Themes Silver and IShares Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Themes Silver position performs unexpectedly, IShares Silver 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 Silver will offset losses from the drop in IShares Silver's long position.| Themes Silver vs. iShares Silver Trust | Themes Silver vs. SPDR Gold Shares | Themes Silver vs. Newmont Goldcorp Corp | Themes Silver vs. Direxion Daily Gold |
| IShares Silver vs. SPDR Gold Shares | IShares Silver vs. VanEck Gold Miners | IShares Silver vs. United States Oil | IShares Silver vs. iShares Gold Trust |
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.
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