Correlation Between IShares Select and EA Series
Can any of the company-specific risk be diversified away by investing in both IShares Select and EA Series 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 Select and EA Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Select Dividend and EA Series Trust, you can compare the effects of market volatilities on IShares Select and EA Series 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 Select with a short position of EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Select and EA Series.
Diversification Opportunities for IShares Select and EA Series
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and TBG is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding iShares Select Dividend and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust and IShares Select 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 Select Dividend are associated (or correlated) with EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of IShares Select i.e., IShares Select and EA Series go up and down completely randomly.
Pair Corralation between IShares Select and EA Series
Considering the 90-day investment horizon IShares Select is expected to generate 1.08 times less return on investment than EA Series. In addition to that, IShares Select is 1.06 times more volatile than EA Series Trust. It trades about 0.18 of its total potential returns per unit of risk. EA Series Trust is currently generating about 0.21 per unit of volatility. If you would invest 2,836 in EA Series Trust on September 1, 2024 and sell it today you would earn a total of 563.00 from holding EA Series Trust or generate 19.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Select Dividend vs. EA Series Trust
Performance |
| Timeline |
| iShares Select Dividend |
| EA Series Trust |
IShares Select and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Select and EA Series
The main advantage of trading using opposite IShares Select and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Select position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' long position.| IShares Select vs. SPDR SP Dividend | IShares Select vs. Vanguard Dividend Appreciation | IShares Select vs. iShares Core High | IShares Select vs. iShares Preferred and |
| EA Series vs. iShares Core SP | EA Series vs. iShares Core MSCI | EA Series vs. iShares Broad USD | EA Series vs. iShares Core SP |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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