Correlation Between IShares Trust and IShares SP
Can any of the company-specific risk be diversified away by investing in both IShares Trust and IShares SP 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 Trust and IShares SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Trust and iShares SP GSCI, you can compare the effects of market volatilities on IShares Trust and IShares SP 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 Trust with a short position of IShares SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Trust and IShares SP.
Diversification Opportunities for IShares Trust and IShares SP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and iShares SP GSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SP GSCI and IShares Trust 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 Trust are associated (or correlated) with IShares SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SP GSCI has no effect on the direction of IShares Trust i.e., IShares Trust and IShares SP go up and down completely randomly.
Pair Corralation between IShares Trust and IShares SP
If you would invest 214,850 in iShares Trust on August 27, 2024 and sell it today you would earn a total of 23,050 from holding iShares Trust or generate 10.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Trust vs. iShares SP GSCI
Performance |
| Timeline |
| iShares Trust |
| iShares SP GSCI |
IShares Trust and IShares SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Trust and IShares SP
The main advantage of trading using opposite IShares Trust and IShares SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Trust position performs unexpectedly, IShares SP 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 SP will offset losses from the drop in IShares SP's long position.| IShares Trust vs. Vanguard Index Funds | IShares Trust vs. Vanguard Index Funds | IShares Trust vs. Vanguard Tax Managed Funds | IShares Trust vs. Vanguard International Equity |
| IShares SP vs. iShares Trust | IShares SP vs. iShares Trust | IShares SP vs. iShares Trust | IShares SP vs. iShares Trust |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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