Correlation Between IShares Govt and IShares Smart
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By analyzing existing cross correlation between iShares Govt Bond and iShares Smart City, you can compare the effects of market volatilities on IShares Govt and IShares Smart 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 Govt with a short position of IShares Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Govt and IShares Smart.
Diversification Opportunities for IShares Govt and IShares Smart
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IShares and IShares is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding iShares Govt Bond and iShares Smart City in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Smart City and IShares Govt 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 Govt Bond are associated (or correlated) with IShares Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Smart City has no effect on the direction of IShares Govt i.e., IShares Govt and IShares Smart go up and down completely randomly.
Pair Corralation between IShares Govt and IShares Smart
Assuming the 90 days trading horizon iShares Govt Bond is expected to generate 0.34 times more return on investment than IShares Smart. However, iShares Govt Bond is 2.92 times less risky than IShares Smart. It trades about 0.52 of its potential returns per unit of risk. iShares Smart City is currently generating about 0.01 per unit of risk. If you would invest 15,309 in iShares Govt Bond on September 12, 2024 and sell it today you would earn a total of 469.00 from holding iShares Govt Bond or generate 3.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
iShares Govt Bond vs. iShares Smart City
Performance |
| Timeline |
| iShares Govt Bond |
| iShares Smart City |
IShares Govt and IShares Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Govt and IShares Smart
The main advantage of trading using opposite IShares Govt and IShares Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Govt position performs unexpectedly, IShares Smart 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 Smart will offset losses from the drop in IShares Smart's long position.| IShares Govt vs. UBS Fund Solutions | IShares Govt vs. Xtrackers II | IShares Govt vs. Xtrackers Nikkei 225 | IShares Govt vs. iShares VII PLC |
| IShares Smart vs. iShares Govt Bond | IShares Smart vs. iShares Global AAA AA | IShares Smart vs. iShares Smart City | IShares Smart vs. iShares Broad High |
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.
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