Correlation Between IShares UBS and IShares Core
Can any of the company-specific risk be diversified away by investing in both IShares UBS and IShares Core 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 UBS and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares UBS Government and iShares Core Cash, you can compare the effects of market volatilities on IShares UBS and IShares Core 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 UBS with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares UBS and IShares Core.
Diversification Opportunities for IShares UBS and IShares Core
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and IShares is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding iShares UBS Government and iShares Core Cash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core Cash and IShares UBS 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 UBS Government are associated (or correlated) with IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core Cash has no effect on the direction of IShares UBS i.e., IShares UBS and IShares Core go up and down completely randomly.
Pair Corralation between IShares UBS and IShares Core
Assuming the 90 days trading horizon IShares UBS is expected to generate 52.84 times less return on investment than IShares Core. But when comparing it to its historical volatility, iShares UBS Government is 19.75 times less risky than IShares Core. It trades about 0.01 of its potential returns per unit of risk. iShares Core Cash is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 9,741 in iShares Core Cash on September 1, 2024 and sell it today you would earn a total of 326.00 from holding iShares Core Cash or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares UBS Government vs. iShares Core Cash
Performance |
| Timeline |
| iShares UBS Government |
| iShares Core Cash |
IShares UBS and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares UBS and IShares Core
The main advantage of trading using opposite IShares UBS and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares UBS position performs unexpectedly, IShares Core 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 Core will offset losses from the drop in IShares Core's long position.| IShares UBS vs. iShares MSCI Emerging | IShares UBS vs. iShares Global Aggregate | IShares UBS vs. iShares CoreSP MidCap | IShares UBS vs. iShares SP 500 |
| IShares Core vs. iShares MSCI Emerging | IShares Core vs. iShares Global Aggregate | IShares Core vs. iShares CoreSP MidCap | IShares Core vs. iShares SP 500 |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |