Correlation Between T Rex and IShares International
Can any of the company-specific risk be diversified away by investing in both T Rex and IShares International 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 T Rex and IShares International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Rex 2X Long and iShares International Treasury, you can compare the effects of market volatilities on T Rex and IShares International 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 T Rex with a short position of IShares International. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Rex and IShares International.
Diversification Opportunities for T Rex and IShares International
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NVDX and IShares is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding T Rex 2X Long and iShares International Treasury in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares International and T Rex 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 T Rex 2X Long are associated (or correlated) with IShares International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares International has no effect on the direction of T Rex i.e., T Rex and IShares International go up and down completely randomly.
Pair Corralation between T Rex and IShares International
Given the investment horizon of 90 days T Rex 2X Long is expected to generate 10.53 times more return on investment than IShares International. However, T Rex is 10.53 times more volatile than iShares International Treasury. It trades about 0.15 of its potential returns per unit of risk. iShares International Treasury is currently generating about -0.01 per unit of risk. If you would invest 249.00 in T Rex 2X Long on August 23, 2024 and sell it today you would earn a total of 1,708 from holding T Rex 2X Long or generate 685.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 55.65% |
| Values | Daily Returns |
T Rex 2X Long vs. iShares International Treasury
Performance |
| Timeline |
| T Rex 2X |
| iShares International |
T Rex and IShares International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Rex and IShares International
The main advantage of trading using opposite T Rex and IShares International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Rex position performs unexpectedly, IShares International 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 International will offset losses from the drop in IShares International's long position.| T Rex vs. Franklin Templeton ETF | T Rex vs. Tidal Trust II | T Rex vs. Tidal Trust II | T Rex vs. iShares Dividend and |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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