Correlation Between IShares Russell and Brendan Wood
Can any of the company-specific risk be diversified away by investing in both IShares Russell and Brendan Wood 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 Brendan Wood 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 Brendan Wood TopGun, you can compare the effects of market volatilities on IShares Russell and Brendan Wood 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 Brendan Wood. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Russell and Brendan Wood.
Diversification Opportunities for IShares Russell and Brendan Wood
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Brendan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding iShares Russell 1000 and Brendan Wood TopGun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brendan Wood TopGun 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 Brendan Wood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brendan Wood TopGun has no effect on the direction of IShares Russell i.e., IShares Russell and Brendan Wood go up and down completely randomly.
Pair Corralation between IShares Russell and Brendan Wood
Considering the 90-day investment horizon iShares Russell 1000 is expected to generate 1.72 times more return on investment than Brendan Wood. However, IShares Russell is 1.72 times more volatile than Brendan Wood TopGun. It trades about 0.24 of its potential returns per unit of risk. Brendan Wood TopGun is currently generating about -0.16 per unit of risk. If you would invest 39,848 in iShares Russell 1000 on September 12, 2024 and sell it today you would earn a total of 1,736 from holding iShares Russell 1000 or generate 4.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Russell 1000 vs. Brendan Wood TopGun
Performance |
| Timeline |
| iShares Russell 1000 |
| Brendan Wood TopGun |
IShares Russell and Brendan Wood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Russell and Brendan Wood
The main advantage of trading using opposite IShares Russell and Brendan Wood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Russell position performs unexpectedly, Brendan Wood 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 Brendan Wood will offset losses from the drop in Brendan Wood's long position.| IShares Russell vs. iShares Factors Growth | IShares Russell vs. Absolute Core Strategy | IShares Russell vs. iShares ESG Advanced | IShares Russell vs. PIMCO RAFI Dynamic |
| Brendan Wood vs. FT Vest Equity | Brendan Wood vs. Northern Lights | Brendan Wood vs. Dimensional International High | Brendan Wood vs. JPMorgan Fundamental Data |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| 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 | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |