Correlation Between IShares Russell and ACGR
Can any of the company-specific risk be diversified away by investing in both IShares Russell and ACGR 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 Russell and ACGR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Russell 1000 and ACGR, you can compare the effects of market volatilities on IShares Russell and ACGR 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 Russell with a short position of ACGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Russell and ACGR.
Diversification Opportunities for IShares Russell and ACGR
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between IShares and ACGR is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding iShares Russell 1000 and ACGR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACGR and IShares Russell 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 Russell 1000 are associated (or correlated) with ACGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACGR has no effect on the direction of IShares Russell i.e., IShares Russell and ACGR go up and down completely randomly.
Pair Corralation between IShares Russell and ACGR
Considering the 90-day investment horizon iShares Russell 1000 is expected to generate 1.09 times more return on investment than ACGR. However, IShares Russell is 1.09 times more volatile than ACGR. It trades about -0.01 of its potential returns per unit of risk. ACGR is currently generating about -0.01 per unit of risk. If you would invest 41,674 in iShares Russell 1000 on October 25, 2024 and sell it today you would lose (113.00) from holding iShares Russell 1000 or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Russell 1000 vs. ACGR
Performance |
| Timeline |
| iShares Russell 1000 |
| ACGR |
IShares Russell and ACGR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Russell and ACGR
The main advantage of trading using opposite IShares Russell and ACGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Russell position performs unexpectedly, ACGR 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 ACGR will offset losses from the drop in ACGR's long position.| IShares Russell vs. iShares Russell 1000 | IShares Russell vs. iShares Russell 2000 | IShares Russell vs. iShares Russell 2000 | IShares Russell vs. iShares Russell 1000 |
| ACGR vs. FT Vest Equity | ACGR vs. Northern Lights | ACGR vs. Dimensional International High | ACGR vs. First Trust Exchange Traded |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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