Correlation Between Fondo Mutuo and IShares Trust
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By analyzing existing cross correlation between Fondo Mutuo ETF and iShares Trust , you can compare the effects of market volatilities on Fondo Mutuo and IShares Trust 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 Fondo Mutuo with a short position of IShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fondo Mutuo and IShares Trust.
Diversification Opportunities for Fondo Mutuo and IShares Trust
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fondo and IShares is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Fondo Mutuo ETF and iShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Trust and Fondo Mutuo 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 Fondo Mutuo ETF are associated (or correlated) with IShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Trust has no effect on the direction of Fondo Mutuo i.e., Fondo Mutuo and IShares Trust go up and down completely randomly.
Pair Corralation between Fondo Mutuo and IShares Trust
Assuming the 90 days trading horizon Fondo Mutuo is expected to generate 1.17 times less return on investment than IShares Trust. But when comparing it to its historical volatility, Fondo Mutuo ETF is 2.08 times less risky than IShares Trust. It trades about 0.21 of its potential returns per unit of risk. iShares Trust is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 15,709,000 in iShares Trust on September 12, 2024 and sell it today you would earn a total of 465,200 from holding iShares Trust or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Fondo Mutuo ETF vs. iShares Trust
Performance |
| Timeline |
| Fondo Mutuo ETF |
| iShares Trust |
Fondo Mutuo and IShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fondo Mutuo and IShares Trust
The main advantage of trading using opposite Fondo Mutuo and IShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fondo Mutuo position performs unexpectedly, IShares Trust 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 Trust will offset losses from the drop in IShares Trust's long position.| Fondo Mutuo vs. Fondo De Inversion | Fondo Mutuo vs. Multiexport Foods SA | Fondo Mutuo vs. Sociedad Matriz SAAM | Fondo Mutuo vs. Soquicom |
| IShares Trust vs. Fondo De Inversion | IShares Trust vs. Prince of Wales | IShares Trust vs. Moneda Deuda Latinoamericana | IShares Trust vs. MBI Administradora General |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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