Correlation Between IShares SP and Series Portfolios
Can any of the company-specific risk be diversified away by investing in both IShares SP and Series Portfolios 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 SP and Series Portfolios into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares SP Small Cap and Series Portfolios Trust, you can compare the effects of market volatilities on IShares SP and Series Portfolios 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 SP with a short position of Series Portfolios. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares SP and Series Portfolios.
Diversification Opportunities for IShares SP and Series Portfolios
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Series is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding iShares SP Small Cap and Series Portfolios Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Series Portfolios Trust and IShares SP 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 SP Small Cap are associated (or correlated) with Series Portfolios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Series Portfolios Trust has no effect on the direction of IShares SP i.e., IShares SP and Series Portfolios go up and down completely randomly.
Pair Corralation between IShares SP and Series Portfolios
Considering the 90-day investment horizon iShares SP Small Cap is expected to generate 1.23 times more return on investment than Series Portfolios. However, IShares SP is 1.23 times more volatile than Series Portfolios Trust. It trades about 0.3 of its potential returns per unit of risk. Series Portfolios Trust is currently generating about 0.29 per unit of risk. If you would invest 10,577 in iShares SP Small Cap on September 1, 2024 and sell it today you would earn a total of 1,139 from holding iShares SP Small Cap or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
iShares SP Small Cap vs. Series Portfolios Trust
Performance |
| Timeline |
| iShares SP Small |
| Series Portfolios Trust |
IShares SP and Series Portfolios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares SP and Series Portfolios
The main advantage of trading using opposite IShares SP and Series Portfolios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SP position performs unexpectedly, Series Portfolios 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 Series Portfolios will offset losses from the drop in Series Portfolios' long position.| IShares SP vs. Vanguard Small Cap Value | IShares SP vs. Dimensional Targeted Value | IShares SP vs. SPDR SP 600 | IShares SP vs. Avantis Small Cap |
| Series Portfolios vs. Dimensional ETF Trust | Series Portfolios vs. Vanguard Small Cap Index | Series Portfolios vs. First Trust Multi Manager | Series Portfolios vs. Vanguard SP Small Cap |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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