Correlation Between IShares Trust and Aptus Defined
Can any of the company-specific risk be diversified away by investing in both IShares Trust and Aptus Defined 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 Trust and Aptus Defined into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Trust and Aptus Defined Risk, you can compare the effects of market volatilities on IShares Trust and Aptus Defined 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 Trust with a short position of Aptus Defined. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Trust and Aptus Defined.
Diversification Opportunities for IShares Trust and Aptus Defined
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IShares and Aptus is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and Aptus Defined Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptus Defined Risk and IShares Trust 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 Trust are associated (or correlated) with Aptus Defined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptus Defined Risk has no effect on the direction of IShares Trust i.e., IShares Trust and Aptus Defined go up and down completely randomly.
Pair Corralation between IShares Trust and Aptus Defined
Given the investment horizon of 90 days iShares Trust is expected to generate 0.64 times more return on investment than Aptus Defined. However, iShares Trust is 1.57 times less risky than Aptus Defined. It trades about 0.17 of its potential returns per unit of risk. Aptus Defined Risk is currently generating about 0.02 per unit of risk. If you would invest 3,081 in iShares Trust on September 14, 2024 and sell it today you would earn a total of 39.00 from holding iShares Trust or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Trust vs. Aptus Defined Risk
Performance |
| Timeline |
| iShares Trust |
| Aptus Defined Risk |
IShares Trust and Aptus Defined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Trust and Aptus Defined
The main advantage of trading using opposite IShares Trust and Aptus Defined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Trust position performs unexpectedly, Aptus Defined 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 Aptus Defined will offset losses from the drop in Aptus Defined's long position.| IShares Trust vs. First Trust Multi Asset | IShares Trust vs. Collaborative Investment Series | IShares Trust vs. EA Series Trust | IShares Trust vs. Aptus Defined Risk |
| Aptus Defined vs. Amplify BlackSwan Growth | Aptus Defined vs. Aptus Collared Income | Aptus Defined vs. Aptus Drawdown Managed | Aptus Defined vs. Cambria Tail Risk |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |