Correlation Between IShares SP and IShares Trust
Can any of the company-specific risk be diversified away by investing in both IShares SP and IShares Trust 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 SP and IShares Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares SP GSCI and iShares Trust , you can compare the effects of market volatilities on IShares SP and IShares Trust 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 SP with a short position of IShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares SP and IShares Trust.
Diversification Opportunities for IShares SP and IShares Trust
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares SP GSCI and iShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Trust and IShares SP 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 SP GSCI are associated (or correlated) with IShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Trust has no effect on the direction of IShares SP i.e., IShares SP and IShares Trust go up and down completely randomly.
Pair Corralation between IShares SP and IShares Trust
If you would invest 320,700 in iShares Trust on August 30, 2024 and sell it today you would earn a total of 47,623 from holding iShares Trust or generate 14.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares SP GSCI vs. iShares Trust
Performance |
| Timeline |
| iShares SP GSCI |
| iShares Trust |
IShares SP and IShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares SP and IShares Trust
The main advantage of trading using opposite IShares SP and IShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SP position performs unexpectedly, IShares Trust 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 Trust will offset losses from the drop in IShares Trust's long position.| IShares SP vs. iShares Trust | IShares SP vs. iShares Trust | IShares SP vs. iShares Trust | IShares SP vs. iShares Trust |
| IShares Trust vs. SPDR SP 500 | IShares Trust vs. Vanguard Bond Index | IShares Trust vs. Invesco QQQ Trust | IShares Trust vs. Vanguard Tax Managed Funds |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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