Correlation Between IShares Core and Themes Cash
Can any of the company-specific risk be diversified away by investing in both IShares Core and Themes Cash 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 Themes Cash 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 Themes Cash Flow, you can compare the effects of market volatilities on IShares Core and Themes Cash 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 Themes Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Themes Cash.
Diversification Opportunities for IShares Core and Themes Cash
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Themes is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and Themes Cash Flow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themes Cash Flow 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 Themes Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themes Cash Flow has no effect on the direction of IShares Core i.e., IShares Core and Themes Cash go up and down completely randomly.
Pair Corralation between IShares Core and Themes Cash
Considering the 90-day investment horizon iShares Core SP is expected to generate 0.71 times more return on investment than Themes Cash. However, iShares Core SP is 1.42 times less risky than Themes Cash. It trades about 0.38 of its potential returns per unit of risk. Themes Cash Flow is currently generating about 0.26 per unit of risk. If you would invest 57,124 in iShares Core SP on September 1, 2024 and sell it today you would earn a total of 3,383 from holding iShares Core SP or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
iShares Core SP vs. Themes Cash Flow
Performance |
| Timeline |
| iShares Core SP |
| Themes Cash Flow |
IShares Core and Themes Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Themes Cash
The main advantage of trading using opposite IShares Core and Themes Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, Themes Cash 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 Themes Cash will offset losses from the drop in Themes Cash's 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 |
| Themes Cash vs. Vanguard Total Stock | Themes Cash vs. SPDR SP 500 | Themes Cash vs. iShares Core SP | Themes Cash vs. Vanguard Total Bond |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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