Correlation Between IShares Core and EA Series
Can any of the company-specific risk be diversified away by investing in both IShares Core 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 Core 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 Core SP and EA Series Trust, you can compare the effects of market volatilities on IShares Core 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 Core with a short position of EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and EA Series.
Diversification Opportunities for IShares Core and EA Series
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between IShares and STXM is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP 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 Core 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 Core SP 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 Core i.e., IShares Core and EA Series go up and down completely randomly.
Pair Corralation between IShares Core and EA Series
Considering the 90-day investment horizon IShares Core is expected to generate 45.53 times less return on investment than EA Series. But when comparing it to its historical volatility, iShares Core SP is 76.72 times less risky than EA Series. It trades about 0.14 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.00 in EA Series Trust on August 26, 2024 and sell it today you would earn a total of 2,796 from holding EA Series Trust or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 59.26% |
| Values | Daily Returns |
iShares Core SP vs. EA Series Trust
Performance |
| Timeline |
| iShares Core SP |
| EA Series Trust |
IShares Core and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and EA Series
The main advantage of trading using opposite IShares Core and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core 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 Core vs. JPMorgan Fundamental Data | IShares Core vs. Vanguard Mid Cap Index | IShares Core vs. SPDR SP 400 | IShares Core vs. SPDR SP 400 |
| EA Series vs. Vanguard Mid Cap Index | EA Series vs. Vanguard Extended Market | EA Series vs. iShares Core SP | EA Series vs. SPDR SP MIDCAP |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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