Correlation Between IShares Expanded and XWEB
Can any of the company-specific risk be diversified away by investing in both IShares Expanded and XWEB 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 Expanded and XWEB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Expanded Tech and XWEB, you can compare the effects of market volatilities on IShares Expanded and XWEB 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 Expanded with a short position of XWEB. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Expanded and XWEB.
Diversification Opportunities for IShares Expanded and XWEB
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and XWEB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares Expanded Tech and XWEB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XWEB and IShares Expanded 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 Expanded Tech are associated (or correlated) with XWEB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XWEB has no effect on the direction of IShares Expanded i.e., IShares Expanded and XWEB go up and down completely randomly.
Pair Corralation between IShares Expanded and XWEB
If you would invest 5,128 in iShares Expanded Tech on November 19, 2024 and sell it today you would earn a total of 5,683 from holding iShares Expanded Tech or generate 110.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
iShares Expanded Tech vs. XWEB
Performance |
| Timeline |
| iShares Expanded Tech |
| XWEB |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
IShares Expanded and XWEB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Expanded and XWEB
The main advantage of trading using opposite IShares Expanded and XWEB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Expanded position performs unexpectedly, XWEB 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 XWEB will offset losses from the drop in XWEB's long position.| IShares Expanded vs. iShares Global Tech | IShares Expanded vs. iShares Technology ETF | IShares Expanded vs. iShares Consumer Discretionary | IShares Expanded vs. iShares Expanded Tech Software |
| XWEB vs. SPDR FactSet Innovative | XWEB vs. SPDR SP Software | XWEB vs. SPDR Morgan Stanley | XWEB vs. SPDR SP Health |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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