Correlation Between IShares VII and IShares EUR
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By analyzing existing cross correlation between iShares VII PLC and iShares EUR Cash, you can compare the effects of market volatilities on IShares VII and IShares EUR 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 VII with a short position of IShares EUR. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares VII and IShares EUR.
Diversification Opportunities for IShares VII and IShares EUR
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and IShares is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding iShares VII PLC and iShares EUR Cash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares EUR Cash and IShares VII 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 VII PLC are associated (or correlated) with IShares EUR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares EUR Cash has no effect on the direction of IShares VII i.e., IShares VII and IShares EUR go up and down completely randomly.
Pair Corralation between IShares VII and IShares EUR
Assuming the 90 days trading horizon iShares VII PLC is expected to generate 27.5 times more return on investment than IShares EUR. However, IShares VII is 27.5 times more volatile than iShares EUR Cash. It trades about 0.05 of its potential returns per unit of risk. iShares EUR Cash is currently generating about 0.33 per unit of risk. If you would invest 21,020 in iShares VII PLC on October 16, 2024 and sell it today you would earn a total of 3,010 from holding iShares VII PLC or generate 14.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 11.19% |
| Values | Daily Returns |
iShares VII PLC vs. iShares EUR Cash
Performance |
| Timeline |
| iShares VII PLC |
| iShares EUR Cash |
IShares VII and IShares EUR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares VII and IShares EUR
The main advantage of trading using opposite IShares VII and IShares EUR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares VII position performs unexpectedly, IShares EUR 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 EUR will offset losses from the drop in IShares EUR's long position.| IShares VII vs. iShares Govt Bond | IShares VII vs. iShares Global AAA AA | IShares VII vs. iShares Smart City | IShares VII vs. iShares Broad High |
| IShares EUR vs. iShares Govt Bond | IShares EUR vs. iShares Global AAA AA | IShares EUR vs. iShares Smart City | IShares EUR vs. iShares Broad High |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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