Correlation Between IShares Core and ZKB Gold
Can any of the company-specific risk be diversified away by investing in both IShares Core and ZKB Gold 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 Core and ZKB Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core MSCI and ZKB Gold ETF, you can compare the effects of market volatilities on IShares Core and ZKB Gold 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 Core with a short position of ZKB Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and ZKB Gold.
Diversification Opportunities for IShares Core and ZKB Gold
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IShares and ZKB is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core MSCI and ZKB Gold ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZKB Gold ETF and IShares Core 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 Core MSCI are associated (or correlated) with ZKB Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZKB Gold ETF has no effect on the direction of IShares Core i.e., IShares Core and ZKB Gold go up and down completely randomly.
Pair Corralation between IShares Core and ZKB Gold
Assuming the 90 days trading horizon iShares Core MSCI is expected to under-perform the ZKB Gold. But the etf apears to be less risky and, when comparing its historical volatility, iShares Core MSCI is 1.18 times less risky than ZKB Gold. The etf trades about -0.14 of its potential returns per unit of risk. The ZKB Gold ETF is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 235,300 in ZKB Gold ETF on September 5, 2024 and sell it today you would earn a total of 350.00 from holding ZKB Gold ETF or generate 0.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
iShares Core MSCI vs. ZKB Gold ETF
Performance |
| Timeline |
| iShares Core MSCI |
| ZKB Gold ETF |
IShares Core and ZKB Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and ZKB Gold
The main advantage of trading using opposite IShares Core and ZKB Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, ZKB Gold 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 ZKB Gold will offset losses from the drop in ZKB Gold's long position.| IShares Core vs. Vanguard SP 500 | IShares Core vs. iShares Core SP | IShares Core vs. Lyxor Japan UCITS | IShares Core vs. iShares SP 500 |
| ZKB Gold vs. Vanguard SP 500 | ZKB Gold vs. iShares Core SP | ZKB Gold vs. Lyxor Japan UCITS | ZKB Gold vs. iShares SP 500 |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |