Correlation Between Themes Cybersecurity and IShares Dividend
Can any of the company-specific risk be diversified away by investing in both Themes Cybersecurity and IShares Dividend 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 Themes Cybersecurity and IShares Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Themes Cybersecurity ETF and iShares Dividend and, you can compare the effects of market volatilities on Themes Cybersecurity and IShares Dividend 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 Themes Cybersecurity with a short position of IShares Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Themes Cybersecurity and IShares Dividend.
Diversification Opportunities for Themes Cybersecurity and IShares Dividend
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Themes and IShares is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Themes Cybersecurity ETF and iShares Dividend and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Dividend and Themes Cybersecurity 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 Themes Cybersecurity ETF are associated (or correlated) with IShares Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Dividend has no effect on the direction of Themes Cybersecurity i.e., Themes Cybersecurity and IShares Dividend go up and down completely randomly.
Pair Corralation between Themes Cybersecurity and IShares Dividend
Given the investment horizon of 90 days Themes Cybersecurity is expected to generate 1.35 times less return on investment than IShares Dividend. In addition to that, Themes Cybersecurity is 1.64 times more volatile than iShares Dividend and. It trades about 0.03 of its total potential returns per unit of risk. iShares Dividend and is currently generating about 0.06 per unit of volatility. If you would invest 3,505 in iShares Dividend and on January 14, 2025 and sell it today you would earn a total of 1,007 from holding iShares Dividend and or generate 28.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 67.94% |
| Values | Daily Returns |
Themes Cybersecurity ETF vs. iShares Dividend and
Performance |
| Timeline |
| Themes Cybersecurity ETF |
| iShares Dividend |
Themes Cybersecurity and IShares Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Themes Cybersecurity and IShares Dividend
The main advantage of trading using opposite Themes Cybersecurity and IShares Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Themes Cybersecurity position performs unexpectedly, IShares Dividend 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 Dividend will offset losses from the drop in IShares Dividend's long position.| Themes Cybersecurity vs. Strategy Shares | Themes Cybersecurity vs. Freedom Day Dividend | Themes Cybersecurity vs. Franklin Templeton ETF | Themes Cybersecurity vs. iShares MSCI China |
| IShares Dividend vs. iShares ESG Aware | IShares Dividend vs. Pacer Cash Cows | IShares Dividend vs. iShares MSCI USA | IShares Dividend vs. Invesco KBW Premium |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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