Correlation Between IShares Core and Syntax
Can any of the company-specific risk be diversified away by investing in both IShares Core and Syntax 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 Syntax 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 Syntax, you can compare the effects of market volatilities on IShares Core and Syntax 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 Syntax. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Syntax.
Diversification Opportunities for IShares Core and Syntax
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IShares and Syntax is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and Syntax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syntax 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 Syntax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Syntax has no effect on the direction of IShares Core i.e., IShares Core and Syntax go up and down completely randomly.
Pair Corralation between IShares Core and Syntax
Considering the 90-day investment horizon IShares Core is expected to generate 1.49 times less return on investment than Syntax. In addition to that, IShares Core is 1.17 times more volatile than Syntax. It trades about 0.06 of its total potential returns per unit of risk. Syntax is currently generating about 0.11 per unit of volatility. If you would invest 4,501 in Syntax on November 2, 2024 and sell it today you would earn a total of 94.00 from holding Syntax or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 19.42% |
| Values | Daily Returns |
iShares Core SP vs. Syntax
Performance |
| Timeline |
| iShares Core SP |
| Syntax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares Core and Syntax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Syntax
The main advantage of trading using opposite IShares Core and Syntax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, Syntax 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 Syntax will offset losses from the drop in Syntax's long position.| IShares Core vs. iShares Core SP | IShares Core vs. iShares Core SP | IShares Core vs. iShares SP Small Cap | IShares Core vs. iShares SP 500 |
| Syntax vs. Exchange Listed Funds | Syntax vs. 6 Meridian Small | Syntax vs. Hartford Multifactor Small | Syntax vs. Two Roads Shared |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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