Correlation Between IShares International and IShares
Can any of the company-specific risk be diversified away by investing in both IShares International 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 International and IShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares International Developed and IShares, you can compare the effects of market volatilities on IShares International 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 International with a short position of IShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares International and IShares.
Diversification Opportunities for IShares International and IShares
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between IShares and IShares is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding iShares International Develope and IShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares and IShares International 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 International Developed 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 International i.e., IShares International and IShares go up and down completely randomly.
Pair Corralation between IShares International and IShares
If you would invest 1,928 in iShares International Developed on November 3, 2024 and sell it today you would earn a total of 45.00 from holding iShares International Developed or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
iShares International Develope vs. IShares
Performance |
| Timeline |
| iShares International |
| IShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares International and IShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares International and IShares
The main advantage of trading using opposite IShares International and IShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares International 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 International vs. iShares International Treasury | IShares International vs. iShares 1 3 Year | IShares International vs. SPDR Dow Jones | IShares International vs. iShares MSCI Emerging |
| IShares vs. iShares International Developed | IShares vs. SPDR Dow Jones | IShares vs. iShares Residential and | IShares vs. iShares Global Consumer |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |