Correlation Between IShares Global and EA Series
Can any of the company-specific risk be diversified away by investing in both IShares Global and EA Series 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 EA Series 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 EA Series Trust, you can compare the effects of market volatilities on IShares Global and EA Series 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 EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and EA Series.
Diversification Opportunities for IShares Global and EA Series
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and FTWO is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Clean and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series 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 EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of IShares Global i.e., IShares Global and EA Series go up and down completely randomly.
Pair Corralation between IShares Global and EA Series
Given the investment horizon of 90 days iShares Global Clean is expected to under-perform the EA Series. In addition to that, IShares Global is 1.66 times more volatile than EA Series Trust. It trades about -0.25 of its total potential returns per unit of risk. EA Series Trust is currently generating about 0.06 per unit of volatility. If you would invest 3,107 in EA Series Trust on August 26, 2024 and sell it today you would earn a total of 76.00 from holding EA Series Trust or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Global Clean vs. EA Series Trust
Performance |
| Timeline |
| iShares Global Clean |
| EA Series Trust |
IShares Global and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and EA Series
The main advantage of trading using opposite IShares Global and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' long position.| IShares Global vs. SPDR Kensho New | IShares Global vs. Global X FinTech | IShares Global vs. iShares Genomics Immunology | IShares Global vs. Aquagold International |
| EA Series vs. iShares Dividend and | EA Series vs. Martin Currie Sustainable | EA Series vs. VictoryShares THB Mid | EA Series vs. Mast Global Battery |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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