Correlation Between IShares Core and Leverage Shares
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By analyzing existing cross correlation between iShares Core SP and Leverage Shares 1x, you can compare the effects of market volatilities on IShares Core and Leverage Shares 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 Leverage Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Leverage Shares.
Diversification Opportunities for IShares Core and Leverage Shares
-0.96 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and Leverage is -0.96. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and Leverage Shares 1x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leverage Shares 1x 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 Leverage Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leverage Shares 1x has no effect on the direction of IShares Core i.e., IShares Core and Leverage Shares go up and down completely randomly.
Pair Corralation between IShares Core and Leverage Shares
Assuming the 90 days trading horizon iShares Core SP is expected to generate 0.2 times more return on investment than Leverage Shares. However, iShares Core SP is 5.09 times less risky than Leverage Shares. It trades about 0.17 of its potential returns per unit of risk. Leverage Shares 1x is currently generating about -0.13 per unit of risk. If you would invest 42,465 in iShares Core SP on September 1, 2024 and sell it today you would earn a total of 18,015 from holding iShares Core SP or generate 42.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.64% |
| Values | Daily Returns |
iShares Core SP vs. Leverage Shares 1x
Performance |
| Timeline |
| iShares Core SP |
| Leverage Shares 1x |
IShares Core and Leverage Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Leverage Shares
The main advantage of trading using opposite IShares Core and Leverage Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, Leverage Shares 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 Leverage Shares will offset losses from the drop in Leverage Shares' 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 |
| Leverage Shares vs. Xtrackers Nikkei 225 | Leverage Shares vs. iShares VII PLC | Leverage Shares vs. NMI Holdings | Leverage Shares vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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