Correlation Between IShares Trust and Promotora
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By analyzing existing cross correlation between iShares Trust and Promotora y Operadora, you can compare the effects of market volatilities on IShares Trust and Promotora 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 Promotora. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Trust and Promotora.
Diversification Opportunities for IShares Trust and Promotora
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Promotora is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and Promotora y Operadora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Promotora y Operadora 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 Promotora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Promotora y Operadora has no effect on the direction of IShares Trust i.e., IShares Trust and Promotora go up and down completely randomly.
Pair Corralation between IShares Trust and Promotora
Assuming the 90 days trading horizon iShares Trust is expected to under-perform the Promotora. But the etf apears to be less risky and, when comparing its historical volatility, iShares Trust is 1.23 times less risky than Promotora. The etf trades about -0.24 of its potential returns per unit of risk. The Promotora y Operadora is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 14,440 in Promotora y Operadora on December 11, 2024 and sell it today you would earn a total of 1,406 from holding Promotora y Operadora or generate 9.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Trust vs. Promotora y Operadora
Performance |
| Timeline |
| iShares Trust |
| Promotora y Operadora |
IShares Trust and Promotora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Trust and Promotora
The main advantage of trading using opposite IShares Trust and Promotora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Trust position performs unexpectedly, Promotora 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 Promotora will offset losses from the drop in Promotora's long position.| IShares Trust vs. iShares Trust | IShares Trust vs. iShares Trust | IShares Trust vs. iShares Trust | IShares Trust vs. iShares Trust |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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