Correlation Between IShares Silver and US Global
Can any of the company-specific risk be diversified away by investing in both IShares Silver and US Global 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 Silver and US Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Silver Trust and US Global GO, you can compare the effects of market volatilities on IShares Silver and US Global 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 Silver with a short position of US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Silver and US Global.
Diversification Opportunities for IShares Silver and US Global
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and GOAU is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding iShares Silver Trust and US Global GO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global GO and IShares Silver 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 Silver Trust are associated (or correlated) with US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global GO has no effect on the direction of IShares Silver i.e., IShares Silver and US Global go up and down completely randomly.
Pair Corralation between IShares Silver and US Global
Considering the 90-day investment horizon IShares Silver is expected to generate 1.1 times less return on investment than US Global. But when comparing it to its historical volatility, iShares Silver Trust is 1.1 times less risky than US Global. It trades about 0.04 of its potential returns per unit of risk. US Global GO is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,519 in US Global GO on August 24, 2024 and sell it today you would earn a total of 615.00 from holding US Global GO or generate 40.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Silver Trust vs. US Global GO
Performance |
| Timeline |
| iShares Silver Trust |
| US Global GO |
IShares Silver and US Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Silver and US Global
The main advantage of trading using opposite IShares Silver and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Silver position performs unexpectedly, US Global 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 US Global will offset losses from the drop in US Global's long position.| IShares Silver vs. SPDR Gold Shares | IShares Silver vs. VanEck Gold Miners | IShares Silver vs. United States Oil | IShares Silver vs. iShares Gold Trust |
| US Global vs. VanEck Junior Gold | US Global vs. iShares Silver Trust | US Global vs. SPDR Gold Shares | US Global vs. Newmont Goldcorp Corp |
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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