Correlation Between IShares Core and HANetf ICAV
Can any of the company-specific risk be diversified away by investing in both IShares Core and HANetf ICAV 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 Core and HANetf ICAV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core SP and HANetf ICAV , you can compare the effects of market volatilities on IShares Core and HANetf ICAV 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 Core with a short position of HANetf ICAV. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and HANetf ICAV.
Diversification Opportunities for IShares Core and HANetf ICAV
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and HANetf is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and HANetf ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANetf ICAV and IShares Core 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 Core SP are associated (or correlated) with HANetf ICAV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANetf ICAV has no effect on the direction of IShares Core i.e., IShares Core and HANetf ICAV go up and down completely randomly.
Pair Corralation between IShares Core and HANetf ICAV
Assuming the 90 days trading horizon iShares Core SP is expected to generate 0.55 times more return on investment than HANetf ICAV. However, iShares Core SP is 1.82 times less risky than HANetf ICAV. It trades about 0.11 of its potential returns per unit of risk. HANetf ICAV is currently generating about 0.03 per unit of risk. If you would invest 39,937 in iShares Core SP on November 5, 2024 and sell it today you would earn a total of 22,055 from holding iShares Core SP or generate 55.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Core SP vs. HANetf ICAV
Performance |
| Timeline |
| iShares Core SP |
| HANetf ICAV |
IShares Core and HANetf ICAV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and HANetf ICAV
The main advantage of trading using opposite IShares Core and HANetf ICAV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, HANetf ICAV 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 HANetf ICAV will offset losses from the drop in HANetf ICAV's long position.| IShares Core vs. iShares Govt Bond | IShares Core vs. iShares Global AAA AA | IShares Core vs. iShares Smart City | IShares Core vs. iShares Broad High |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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