Correlation Between Spinnaker ETF and IShares Core
Can any of the company-specific risk be diversified away by investing in both Spinnaker ETF and IShares Core 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 Spinnaker ETF and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spinnaker ETF Series and iShares Core Conservative, you can compare the effects of market volatilities on Spinnaker ETF and IShares Core 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 Spinnaker ETF with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spinnaker ETF and IShares Core.
Diversification Opportunities for Spinnaker ETF and IShares Core
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spinnaker and IShares is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Spinnaker ETF Series and iShares Core Conservative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core Conservative and Spinnaker ETF 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 Spinnaker ETF Series are associated (or correlated) with IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core Conservative has no effect on the direction of Spinnaker ETF i.e., Spinnaker ETF and IShares Core go up and down completely randomly.
Pair Corralation between Spinnaker ETF and IShares Core
Given the investment horizon of 90 days Spinnaker ETF Series is expected to generate 1.44 times more return on investment than IShares Core. However, Spinnaker ETF is 1.44 times more volatile than iShares Core Conservative. It trades about 0.07 of its potential returns per unit of risk. iShares Core Conservative is currently generating about 0.1 per unit of risk. If you would invest 807.00 in Spinnaker ETF Series on August 31, 2024 and sell it today you would earn a total of 130.00 from holding Spinnaker ETF Series or generate 16.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Spinnaker ETF Series vs. iShares Core Conservative
Performance |
| Timeline |
| Spinnaker ETF Series |
| iShares Core Conservative |
Spinnaker ETF and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spinnaker ETF and IShares Core
The main advantage of trading using opposite Spinnaker ETF and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spinnaker ETF position performs unexpectedly, IShares Core 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 Core will offset losses from the drop in IShares Core's long position.| Spinnaker ETF vs. WisdomTree Managed Futures | Spinnaker ETF vs. Innovator SP 500 | Spinnaker ETF vs. Northern Lights |
| IShares Core vs. iShares Core Moderate | IShares Core vs. iShares Core Aggressive | IShares Core vs. iShares Core Growth | IShares Core vs. iShares Agency Bond |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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