Correlation Between IShares Core and IShares UBS
Can any of the company-specific risk be diversified away by investing in both IShares Core and IShares UBS 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 IShares UBS 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 iShares UBS Government, you can compare the effects of market volatilities on IShares Core and IShares UBS 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 IShares UBS. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and IShares UBS.
Diversification Opportunities for IShares Core and IShares UBS
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and IShares is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and iShares UBS Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares UBS Government 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 IShares UBS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares UBS Government has no effect on the direction of IShares Core i.e., IShares Core and IShares UBS go up and down completely randomly.
Pair Corralation between IShares Core and IShares UBS
Assuming the 90 days trading horizon iShares Core SP is expected to generate 3.21 times more return on investment than IShares UBS. However, IShares Core is 3.21 times more volatile than iShares UBS Government. It trades about 0.2 of its potential returns per unit of risk. iShares UBS Government is currently generating about 0.14 per unit of risk. If you would invest 5,901 in iShares Core SP on August 29, 2024 and sell it today you would earn a total of 249.00 from holding iShares Core SP or generate 4.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Core SP vs. iShares UBS Government
Performance |
| Timeline |
| iShares Core SP |
| iShares UBS Government |
IShares Core and IShares UBS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and IShares UBS
The main advantage of trading using opposite IShares Core and IShares UBS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, IShares UBS 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 UBS will offset losses from the drop in IShares UBS's long position.| IShares Core vs. iShares MSCI Emerging | IShares Core vs. iShares Global Aggregate | IShares Core vs. iShares CoreSP MidCap | IShares Core vs. iShares SP 500 |
| IShares UBS vs. iShares MSCI Emerging | IShares UBS vs. iShares Global Aggregate | IShares UBS vs. iShares CoreSP MidCap | IShares UBS 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |