Correlation Between IShares Trust and ACTIREN B
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By analyzing existing cross correlation between iShares Trust and ACTIREN B, you can compare the effects of market volatilities on IShares Trust and ACTIREN B 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 Trust with a short position of ACTIREN B. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Trust and ACTIREN B.
Diversification Opportunities for IShares Trust and ACTIREN B
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and ACTIREN is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and ACTIREN B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACTIREN B and IShares Trust 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 Trust are associated (or correlated) with ACTIREN B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACTIREN B has no effect on the direction of IShares Trust i.e., IShares Trust and ACTIREN B go up and down completely randomly.
Pair Corralation between IShares Trust and ACTIREN B
Assuming the 90 days trading horizon iShares Trust is expected to generate 22.5 times more return on investment than ACTIREN B. However, IShares Trust is 22.5 times more volatile than ACTIREN B. It trades about 0.03 of its potential returns per unit of risk. ACTIREN B is currently generating about 0.58 per unit of risk. If you would invest 183,803 in iShares Trust on September 19, 2024 and sell it today you would earn a total of 897.00 from holding iShares Trust or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Trust vs. ACTIREN B
Performance |
| Timeline |
| iShares Trust |
| ACTIREN B |
IShares Trust and ACTIREN B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Trust and ACTIREN B
The main advantage of trading using opposite IShares Trust and ACTIREN B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Trust position performs unexpectedly, ACTIREN B 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 ACTIREN B will offset losses from the drop in ACTIREN B's long position.| IShares Trust vs. Vanguard Index Funds | IShares Trust vs. Vanguard Index Funds | IShares Trust vs. SPDR SP 500 | IShares Trust vs. Vanguard Bond Index |
| ACTIREN B vs. iShares Global Timber | ACTIREN B vs. Vanguard World | ACTIREN B vs. iShares Trust | ACTIREN B vs. iShares Trust |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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