Correlation Between FF European and IShares Equity
Specify exactly 2 symbols:
By analyzing existing cross correlation between FF European and iShares Equity Enhanced, you can compare the effects of market volatilities on FF European 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 FF European with a short position of IShares Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of FF European and IShares Equity.
Diversification Opportunities for FF European and IShares Equity
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FJ2B and IShares is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding FF European 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 FF European 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 FF European 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 FF European i.e., FF European and IShares Equity go up and down completely randomly.
Pair Corralation between FF European and IShares Equity
Assuming the 90 days trading horizon FF European is expected to under-perform the IShares Equity. But the fund apears to be less risky and, when comparing its historical volatility, FF European is 1.06 times less risky than IShares Equity. The fund trades about -0.1 of its potential returns per unit of risk. The iShares Equity Enhanced is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 536.00 in iShares Equity Enhanced on October 11, 2024 and sell it today you would lose (4.00) from holding iShares Equity Enhanced or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FF European vs. iShares Equity Enhanced
Performance |
| Timeline |
| FF European |
| iShares Equity Enhanced |
FF European and IShares Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FF European and IShares Equity
The main advantage of trading using opposite FF European and IShares Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FF European 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.| FF European vs. Esfera Robotics R | FF European vs. R co Valor F | FF European vs. CM AM Monplus NE | FF European vs. IE00B0H4TS55 |
| IShares Equity vs. JPM America Equity | IShares Equity vs. Pareto Nordic Equity | IShares Equity vs. Esfera Robotics R | IShares Equity vs. R co Valor F |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges |