Correlation Between IShares Global and IShares Trust
Can any of the company-specific risk be diversified away by investing in both IShares Global 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 Global 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 Global Clean and iShares Trust , you can compare the effects of market volatilities on IShares Global 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 Global with a short position of IShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and IShares Trust.
Diversification Opportunities for IShares Global and IShares Trust
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and IShares is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Clean and iShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Trust and IShares Global 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 Global Clean 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 Global i.e., IShares Global and IShares Trust go up and down completely randomly.
Pair Corralation between IShares Global and IShares Trust
Assuming the 90 days trading horizon iShares Global Clean is expected to under-perform the IShares Trust. But the etf apears to be less risky and, when comparing its historical volatility, iShares Global Clean is 1.24 times less risky than IShares Trust. The etf trades about -0.04 of its potential returns per unit of risk. The iShares Trust is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 245,691 in iShares Trust on September 12, 2024 and sell it today you would earn a total of 122,632 from holding iShares Trust or generate 49.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 48.72% |
| Values | Daily Returns |
iShares Global Clean vs. iShares Trust
Performance |
| Timeline |
| iShares Global Clean |
| iShares Trust |
IShares Global and IShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and IShares Trust
The main advantage of trading using opposite IShares Global and IShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global 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 Global vs. iShares Trust | IShares Global vs. iShares Trust | IShares Global vs. iShares Trust | IShares Global vs. iShares Trust |
| IShares Trust vs. Vanguard Index Funds | IShares Trust vs. Vanguard Index Funds | IShares Trust vs. Vanguard STAR Funds | IShares Trust vs. SPDR SP 500 |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |