Correlation Between IShares Short and IShares
Can any of the company-specific risk be diversified away by investing in both IShares Short and IShares 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 Short and IShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Short Maturity and IShares, you can compare the effects of market volatilities on IShares Short and IShares 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 Short with a short position of IShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Short and IShares.
Diversification Opportunities for IShares Short and IShares
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and IShares is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding iShares Short Maturity and IShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares and IShares Short 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 Short Maturity are associated (or correlated) with IShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares has no effect on the direction of IShares Short i.e., IShares Short and IShares go up and down completely randomly.
Pair Corralation between IShares Short and IShares
If you would invest 4,999 in iShares Short Maturity on August 25, 2024 and sell it today you would earn a total of 22.00 from holding iShares Short Maturity or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 2.22% |
| Values | Daily Returns |
iShares Short Maturity vs. IShares
Performance |
| Timeline |
| iShares Short Maturity |
| IShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares Short and IShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Short and IShares
The main advantage of trading using opposite IShares Short and IShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Short position performs unexpectedly, IShares 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 will offset losses from the drop in IShares' long position.| IShares Short vs. iShares Treasury Floating | IShares Short vs. iShares Short Term National | IShares Short vs. iShares Short Maturity | IShares Short vs. iShares Interest Rate |
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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