Correlation Between BGF Euro and IShares Equity
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By analyzing existing cross correlation between BGF Euro Markets and iShares Equity Enhanced, you can compare the effects of market volatilities on BGF Euro and IShares Equity 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 BGF Euro with a short position of IShares Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGF Euro and IShares Equity.
Diversification Opportunities for BGF Euro and IShares Equity
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BGF and IShares is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding BGF Euro Markets and iShares Equity Enhanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Equity Enhanced and BGF Euro 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 BGF Euro Markets are associated (or correlated) with IShares Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Equity Enhanced has no effect on the direction of BGF Euro i.e., BGF Euro and IShares Equity go up and down completely randomly.
Pair Corralation between BGF Euro and IShares Equity
Assuming the 90 days trading horizon BGF Euro is expected to generate 4.26 times less return on investment than IShares Equity. In addition to that, BGF Euro is 1.12 times more volatile than iShares Equity Enhanced. It trades about 0.03 of its total potential returns per unit of risk. iShares Equity Enhanced is currently generating about 0.15 per unit of volatility. If you would invest 471.00 in iShares Equity Enhanced on September 14, 2024 and sell it today you would earn a total of 66.00 from holding iShares Equity Enhanced or generate 14.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 45.97% |
| Values | Daily Returns |
BGF Euro Markets vs. iShares Equity Enhanced
Performance |
| Timeline |
| BGF Euro Markets |
| iShares Equity Enhanced |
BGF Euro and IShares Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGF Euro and IShares Equity
The main advantage of trading using opposite BGF Euro and IShares Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGF Euro position performs unexpectedly, IShares Equity 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 Equity will offset losses from the drop in IShares Equity's long position.| BGF Euro vs. Esfera Robotics R | BGF Euro vs. R co Valor F | BGF Euro vs. CM AM Monplus NE | BGF Euro vs. IE00B0H4TS55 |
| IShares Equity vs. Groupama Entreprises N | IShares Equity vs. Renaissance Europe C | IShares Equity vs. Superior Plus Corp | IShares Equity vs. Origin Agritech |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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