Correlation Between IShares Core and OneAscent Core
Can any of the company-specific risk be diversified away by investing in both IShares Core and OneAscent 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 Core and OneAscent Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core 1 5 and OneAscent Core Plus, you can compare the effects of market volatilities on IShares Core and OneAscent 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 Core with a short position of OneAscent Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and OneAscent Core.
Diversification Opportunities for IShares Core and OneAscent Core
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and OneAscent is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core 1 5 and OneAscent Core Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneAscent Core Plus 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 1 5 are associated (or correlated) with OneAscent Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneAscent Core Plus has no effect on the direction of IShares Core i.e., IShares Core and OneAscent Core go up and down completely randomly.
Pair Corralation between IShares Core and OneAscent Core
Given the investment horizon of 90 days iShares Core 1 5 is expected to generate 0.49 times more return on investment than OneAscent Core. However, iShares Core 1 5 is 2.04 times less risky than OneAscent Core. It trades about 0.13 of its potential returns per unit of risk. OneAscent Core Plus is currently generating about 0.06 per unit of risk. If you would invest 4,429 in iShares Core 1 5 on September 12, 2024 and sell it today you would earn a total of 375.00 from holding iShares Core 1 5 or generate 8.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Core 1 5 vs. OneAscent Core Plus
Performance |
| Timeline |
| iShares Core 1 |
| OneAscent Core Plus |
IShares Core and OneAscent Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and OneAscent Core
The main advantage of trading using opposite IShares Core and OneAscent Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, OneAscent 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 OneAscent Core will offset losses from the drop in OneAscent Core's long position.| IShares Core vs. iShares Core 10 | IShares Core vs. iShares Core Total | IShares Core vs. iShares Core MSCI | IShares Core vs. iShares 0 5 Year |
| OneAscent Core vs. Listed Funds Trust | OneAscent Core vs. PGIM ETF Trust | OneAscent Core vs. SSGA Active Trust | OneAscent Core vs. JPMorgan Inflation Managed |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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