Correlation Between AMS Small and IShares VII
Can any of the company-specific risk be diversified away by investing in both AMS Small and IShares VII 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 AMS Small and IShares VII into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMS Small Cap and iShares VII Public, you can compare the effects of market volatilities on AMS Small and IShares VII 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 AMS Small with a short position of IShares VII. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMS Small and IShares VII.
Diversification Opportunities for AMS Small and IShares VII
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AMS and IShares is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding AMS Small Cap and iShares VII Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares VII Public and AMS Small 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 AMS Small Cap are associated (or correlated) with IShares VII. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares VII Public has no effect on the direction of AMS Small i.e., AMS Small and IShares VII go up and down completely randomly.
Pair Corralation between AMS Small and IShares VII
Assuming the 90 days trading horizon AMS Small is expected to generate 1.22 times less return on investment than IShares VII. But when comparing it to its historical volatility, AMS Small Cap is 1.4 times less risky than IShares VII. It trades about 0.01 of its potential returns per unit of risk. iShares VII Public is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 12,330 in iShares VII Public on September 2, 2024 and sell it today you would earn a total of 229.00 from holding iShares VII Public or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
AMS Small Cap vs. iShares VII Public
Performance |
| Timeline |
AMS Small and IShares VII Volatility Contrast
Predicted Return Density |
| Returns |
AMS Small Cap
Pair trading matchups for AMS Small
iShares VII Public
Pair trading matchups for IShares VII
Pair Trading with AMS Small and IShares VII
The main advantage of trading using opposite AMS Small and IShares VII positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMS Small position performs unexpectedly, IShares VII 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 VII will offset losses from the drop in IShares VII's long position.| AMS Small vs. Reinet Investments SCA | AMS Small vs. Sligro Food Group | AMS Small vs. SBM Offshore NV | AMS Small vs. Universal Music Group |
| IShares VII vs. iShares Core MSCI | IShares VII vs. BlackRock ESG Multi Asset | IShares VII vs. Pershing Square Holdings | IShares VII vs. ASML Holding NV |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |