Correlation Between IShares Core and VelocityShares
Can any of the company-specific risk be diversified away by investing in both IShares Core and VelocityShares 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 VelocityShares 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 VelocityShares, you can compare the effects of market volatilities on IShares Core and VelocityShares 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 VelocityShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and VelocityShares.
Diversification Opportunities for IShares Core and VelocityShares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and VelocityShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and VelocityShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VelocityShares 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 VelocityShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VelocityShares has no effect on the direction of IShares Core i.e., IShares Core and VelocityShares go up and down completely randomly.
Pair Corralation between IShares Core and VelocityShares
If you would invest 42,642 in iShares Core SP on September 4, 2024 and sell it today you would earn a total of 18,029 from holding iShares Core SP or generate 42.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
iShares Core SP vs. VelocityShares
Performance |
| Timeline |
| iShares Core SP |
| VelocityShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares Core and VelocityShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and VelocityShares
The main advantage of trading using opposite IShares Core and VelocityShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, VelocityShares 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 VelocityShares will offset losses from the drop in VelocityShares' long position.| IShares Core vs. iShares Core SP | IShares Core vs. iShares Core SP | IShares Core vs. iShares SP 500 | IShares Core vs. iShares Russell 2000 |
| VelocityShares vs. Vanguard Total Stock | VelocityShares vs. SPDR SP 500 | VelocityShares vs. iShares Core SP | VelocityShares vs. Vanguard Dividend Appreciation |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |