Correlation Between IShares Currency and IShares
Can any of the company-specific risk be diversified away by investing in both IShares Currency and IShares 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 Currency and IShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Currency Hedged and IShares, you can compare the effects of market volatilities on IShares Currency and IShares 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 Currency with a short position of IShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Currency and IShares.
Diversification Opportunities for IShares Currency and IShares
-0.27 | Correlation Coefficient |
Very good 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 Currency Hedged and IShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares and IShares Currency 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 Currency Hedged are associated (or correlated) with IShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares has no effect on the direction of IShares Currency i.e., IShares Currency and IShares go up and down completely randomly.
Pair Corralation between IShares Currency and IShares
If you would invest 2,680 in iShares Currency Hedged on September 1, 2024 and sell it today you would earn a total of 564.00 from holding iShares Currency Hedged or generate 21.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
iShares Currency Hedged vs. IShares
Performance |
| Timeline |
| iShares Currency Hedged |
| IShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares Currency and IShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Currency and IShares
The main advantage of trading using opposite IShares Currency and IShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Currency position performs unexpectedly, IShares 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 will offset losses from the drop in IShares' long position.| IShares Currency vs. Vanguard Global ex US | IShares Currency vs. Vanguard FTSE All World | IShares Currency vs. Vanguard Small Cap Value | IShares Currency vs. Vanguard FTSE Pacific |
| IShares vs. iShares Currency Hedged | IShares vs. iShares MSCI United | IShares vs. iShares Currency Hedged | IShares vs. iShares Currency Hedged |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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