Correlation Between IShares Trust and Salfacorp
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By analyzing existing cross correlation between iShares Trust and Salfacorp, you can compare the effects of market volatilities on IShares Trust and Salfacorp 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 Salfacorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Trust and Salfacorp.
Diversification Opportunities for IShares Trust and Salfacorp
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and Salfacorp is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and Salfacorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salfacorp 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 Salfacorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salfacorp has no effect on the direction of IShares Trust i.e., IShares Trust and Salfacorp go up and down completely randomly.
Pair Corralation between IShares Trust and Salfacorp
Assuming the 90 days trading horizon iShares Trust is expected to generate 1.13 times more return on investment than Salfacorp. However, IShares Trust is 1.13 times more volatile than Salfacorp. It trades about 0.15 of its potential returns per unit of risk. Salfacorp is currently generating about 0.1 per unit of risk. If you would invest 12,577,000 in iShares Trust on November 3, 2024 and sell it today you would earn a total of 3,328,000 from holding iShares Trust or generate 26.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Trust vs. Salfacorp
Performance |
| Timeline |
| iShares Trust |
| Salfacorp |
IShares Trust and Salfacorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Trust and Salfacorp
The main advantage of trading using opposite IShares Trust and Salfacorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Trust position performs unexpectedly, Salfacorp 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 Salfacorp will offset losses from the drop in Salfacorp's long position.| IShares Trust vs. Fondo De Inversion | IShares Trust vs. Prince of Wales | IShares Trust vs. Moneda Deuda Latinoamericana | IShares Trust vs. MBI Administradora General |
| Salfacorp vs. Aguas Andinas SA | Salfacorp vs. Parq Arauco | Salfacorp vs. Enel Generacin Chile | Salfacorp vs. Sociedad Matriz SAAM |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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