Correlation Between IShares Focused and IShares Factors
Can any of the company-specific risk be diversified away by investing in both IShares Focused and IShares Factors 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 IShares Focused and IShares Factors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Focused Value and iShares Factors Growth, you can compare the effects of market volatilities on IShares Focused and IShares Factors 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 Focused with a short position of IShares Factors. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Focused and IShares Factors.
Diversification Opportunities for IShares Focused and IShares Factors
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IShares and IShares is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding iShares Focused Value and iShares Factors Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Factors Growth and IShares Focused 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 Focused Value are associated (or correlated) with IShares Factors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Factors Growth has no effect on the direction of IShares Focused i.e., IShares Focused and IShares Factors go up and down completely randomly.
Pair Corralation between IShares Focused and IShares Factors
If you would invest 6,937 in iShares Focused Value on August 30, 2024 and sell it today you would earn a total of 662.00 from holding iShares Focused Value or generate 9.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
iShares Focused Value vs. iShares Factors Growth
Performance |
| Timeline |
| iShares Focused Value |
| iShares Factors Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares Focused and IShares Factors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Focused and IShares Factors
The main advantage of trading using opposite IShares Focused and IShares Factors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Focused position performs unexpectedly, IShares Factors 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 Factors will offset losses from the drop in IShares Factors' long position.| IShares Focused vs. Roundhill Acquirers Deep | IShares Focused vs. BlackRock Equity Factor | IShares Focused vs. iShares MSCI USA | IShares Focused vs. iShares Evolved Discretionary |
| IShares Factors vs. iShares ESG Advanced | IShares Factors vs. iShares Focused Value | IShares Factors vs. iShares MSCI USA |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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