Correlation Between OneAscent International and IShares ESG
Can any of the company-specific risk be diversified away by investing in both OneAscent International and IShares ESG 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 OneAscent International and IShares ESG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OneAscent International Equity and iShares ESG Aggregate, you can compare the effects of market volatilities on OneAscent International and IShares ESG 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 OneAscent International with a short position of IShares ESG. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneAscent International and IShares ESG.
Diversification Opportunities for OneAscent International and IShares ESG
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OneAscent and IShares is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding OneAscent International Equity and iShares ESG Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares ESG Aggregate and OneAscent International 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 OneAscent International Equity are associated (or correlated) with IShares ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares ESG Aggregate has no effect on the direction of OneAscent International i.e., OneAscent International and IShares ESG go up and down completely randomly.
Pair Corralation between OneAscent International and IShares ESG
Given the investment horizon of 90 days OneAscent International Equity is expected to under-perform the IShares ESG. In addition to that, OneAscent International is 1.96 times more volatile than iShares ESG Aggregate. It trades about -0.02 of its total potential returns per unit of risk. iShares ESG Aggregate is currently generating about 0.14 per unit of volatility. If you would invest 4,707 in iShares ESG Aggregate on September 3, 2024 and sell it today you would earn a total of 49.00 from holding iShares ESG Aggregate or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OneAscent International Equity vs. iShares ESG Aggregate
Performance |
| Timeline |
| OneAscent International |
| iShares ESG Aggregate |
OneAscent International and IShares ESG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneAscent International and IShares ESG
The main advantage of trading using opposite OneAscent International and IShares ESG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneAscent International position performs unexpectedly, IShares ESG 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 ESG will offset losses from the drop in IShares ESG's long position.| OneAscent International vs. Freedom Day Dividend | OneAscent International vs. iShares MSCI China | OneAscent International vs. SmartETFs Dividend Builder | OneAscent International vs. Tidal ETF Trust |
| IShares ESG vs. ClearShares Ultra Short Maturity | IShares ESG vs. PGIM Active High | IShares ESG vs. Pacer Trendpilot Bond | IShares ESG vs. Pacer Lunt Large |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |