Correlation Between Fieldstone UVA and IShares Core
Can any of the company-specific risk be diversified away by investing in both Fieldstone UVA and IShares Core 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 Fieldstone UVA and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fieldstone UVA Unconstrained and iShares Core 10, you can compare the effects of market volatilities on Fieldstone UVA and IShares Core 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 Fieldstone UVA with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fieldstone UVA and IShares Core.
Diversification Opportunities for Fieldstone UVA and IShares Core
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fieldstone and IShares is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Fieldstone UVA Unconstrained and iShares Core 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core 10 and Fieldstone UVA 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 Fieldstone UVA Unconstrained are associated (or correlated) with IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core 10 has no effect on the direction of Fieldstone UVA i.e., Fieldstone UVA and IShares Core go up and down completely randomly.
Pair Corralation between Fieldstone UVA and IShares Core
Given the investment horizon of 90 days Fieldstone UVA Unconstrained is expected to generate 0.92 times more return on investment than IShares Core. However, Fieldstone UVA Unconstrained is 1.09 times less risky than IShares Core. It trades about -0.01 of its potential returns per unit of risk. iShares Core 10 is currently generating about -0.02 per unit of risk. If you would invest 2,161 in Fieldstone UVA Unconstrained on October 26, 2024 and sell it today you would lose (25.00) from holding Fieldstone UVA Unconstrained or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
Fieldstone UVA Unconstrained vs. iShares Core 10
Performance |
| Timeline |
| Fieldstone UVA Uncon |
| iShares Core 10 |
Fieldstone UVA and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fieldstone UVA and IShares Core
The main advantage of trading using opposite Fieldstone UVA and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fieldstone UVA position performs unexpectedly, IShares Core 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 Core will offset losses from the drop in IShares Core's long position.| Fieldstone UVA vs. FlexShares Core Select | Fieldstone UVA vs. Franklin Liberty Investment | Fieldstone UVA vs. Hartford Total Return |
| IShares Core vs. iShares Core 1 5 | IShares Core vs. iShares Agency Bond | IShares Core vs. iShares Intermediate GovernmentCredit | IShares Core vs. iShares GNMA Bond |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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