Correlation Between IShares Preferred and ETFis Series
Can any of the company-specific risk be diversified away by investing in both IShares Preferred and ETFis Series 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 Preferred and ETFis Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Preferred and and ETFis Series Trust, you can compare the effects of market volatilities on IShares Preferred and ETFis Series 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 Preferred with a short position of ETFis Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Preferred and ETFis Series.
Diversification Opportunities for IShares Preferred and ETFis Series
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and ETFis is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding iShares Preferred and and ETFis Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETFis Series Trust and IShares Preferred 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 Preferred and are associated (or correlated) with ETFis Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETFis Series Trust has no effect on the direction of IShares Preferred i.e., IShares Preferred and ETFis Series go up and down completely randomly.
Pair Corralation between IShares Preferred and ETFis Series
Considering the 90-day investment horizon iShares Preferred and is expected to generate 1.07 times more return on investment than ETFis Series. However, IShares Preferred is 1.07 times more volatile than ETFis Series Trust. It trades about 0.0 of its potential returns per unit of risk. ETFis Series Trust is currently generating about -0.06 per unit of risk. If you would invest 3,182 in iShares Preferred and on November 3, 2024 and sell it today you would lose (1.00) from holding iShares Preferred and or give up 0.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
iShares Preferred and vs. ETFis Series Trust
Performance |
| Timeline |
| iShares Preferred |
| ETFis Series Trust |
IShares Preferred and ETFis Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Preferred and ETFis Series
The main advantage of trading using opposite IShares Preferred and ETFis Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Preferred position performs unexpectedly, ETFis Series 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 ETFis Series will offset losses from the drop in ETFis Series' long position.| IShares Preferred vs. Invesco Preferred ETF | IShares Preferred vs. iShares iBoxx High | IShares Preferred vs. Invesco Financial Preferred | IShares Preferred vs. SPDR Bloomberg High |
| ETFis Series vs. Virtus InfraCap Preferred | ETFis Series vs. VanEck Preferred Securities | ETFis Series vs. Global X Preferred | ETFis Series vs. Innovator SP Investment |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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