Correlation Between IShares Short and Macquarie ETF
Can any of the company-specific risk be diversified away by investing in both IShares Short and Macquarie ETF 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 Short and Macquarie ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Short Term National and Macquarie ETF Trust, you can compare the effects of market volatilities on IShares Short and Macquarie ETF 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 Short with a short position of Macquarie ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Short and Macquarie ETF.
Diversification Opportunities for IShares Short and Macquarie ETF
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and Macquarie is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding iShares Short Term National and Macquarie ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie ETF Trust and IShares Short 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 Short Term National are associated (or correlated) with Macquarie ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie ETF Trust has no effect on the direction of IShares Short i.e., IShares Short and Macquarie ETF go up and down completely randomly.
Pair Corralation between IShares Short and Macquarie ETF
Considering the 90-day investment horizon IShares Short is expected to generate 1.11 times less return on investment than Macquarie ETF. In addition to that, IShares Short is 1.02 times more volatile than Macquarie ETF Trust. It trades about 0.14 of its total potential returns per unit of risk. Macquarie ETF Trust is currently generating about 0.16 per unit of volatility. If you would invest 2,528 in Macquarie ETF Trust on August 29, 2024 and sell it today you would earn a total of 11.00 from holding Macquarie ETF Trust or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Short Term National vs. Macquarie ETF Trust
Performance |
| Timeline |
| iShares Short Term |
| Macquarie ETF Trust |
IShares Short and Macquarie ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Short and Macquarie ETF
The main advantage of trading using opposite IShares Short and Macquarie ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Short position performs unexpectedly, Macquarie ETF 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 Macquarie ETF will offset losses from the drop in Macquarie ETF's long position.| IShares Short vs. iShares Interest Rate | IShares Short vs. ABIVAX Socit Anonyme | IShares Short vs. HUMANA INC | IShares Short vs. SCOR PK |
| Macquarie ETF vs. iShares Interest Rate | Macquarie ETF vs. ABIVAX Socit Anonyme | Macquarie ETF vs. HUMANA INC | Macquarie ETF vs. SCOR PK |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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