Correlation Between DSJA and IShares Core
Can any of the company-specific risk be diversified away by investing in both DSJA and IShares Core 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 DSJA and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSJA and iShares Core 5 10, you can compare the effects of market volatilities on DSJA and IShares Core 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 DSJA with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSJA and IShares Core.
Diversification Opportunities for DSJA and IShares Core
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DSJA and IShares is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding DSJA and iShares Core 5 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core 5 and DSJA 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 DSJA are associated (or correlated) with IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core 5 has no effect on the direction of DSJA i.e., DSJA and IShares Core go up and down completely randomly.
Pair Corralation between DSJA and IShares Core
Given the investment horizon of 90 days DSJA is expected to generate 1.31 times more return on investment than IShares Core. However, DSJA is 1.31 times more volatile than iShares Core 5 10. It trades about 0.16 of its potential returns per unit of risk. iShares Core 5 10 is currently generating about 0.04 per unit of risk. If you would invest 2,580 in DSJA on September 1, 2024 and sell it today you would earn a total of 285.00 from holding DSJA or generate 11.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 25.0% |
| Values | Daily Returns |
DSJA vs. iShares Core 5 10
Performance |
| Timeline |
| DSJA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares Core 5 |
DSJA and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSJA and IShares Core
The main advantage of trading using opposite DSJA and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSJA position performs unexpectedly, IShares Core 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 Core will offset losses from the drop in IShares Core's long position.The idea behind DSJA and iShares Core 5 10 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| IShares Core vs. iShares Core 1 5 | IShares Core vs. iShares Core International | IShares Core vs. iShares Core 10 | IShares Core vs. iShares Edge Investment |
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..
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |