Correlation Between VIIX and IShares Oil
Can any of the company-specific risk be diversified away by investing in both VIIX and IShares Oil 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 VIIX and IShares Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIIX and iShares Oil Gas, you can compare the effects of market volatilities on VIIX and IShares Oil 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 VIIX with a short position of IShares Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIIX and IShares Oil.
Diversification Opportunities for VIIX and IShares Oil
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VIIX and IShares is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding VIIX and iShares Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Oil Gas and VIIX 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 VIIX are associated (or correlated) with IShares Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Oil Gas has no effect on the direction of VIIX i.e., VIIX and IShares Oil go up and down completely randomly.
Pair Corralation between VIIX and IShares Oil
If you would invest 10,134 in iShares Oil Gas on August 24, 2024 and sell it today you would lose (47.00) from holding iShares Oil Gas or give up 0.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
VIIX vs. iShares Oil Gas
Performance |
| Timeline |
| VIIX |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares Oil Gas |
VIIX and IShares Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIIX and IShares Oil
The main advantage of trading using opposite VIIX and IShares Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIIX position performs unexpectedly, IShares Oil 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 Oil will offset losses from the drop in IShares Oil's long position.| VIIX vs. Invesco DB Dollar | VIIX vs. iPath Series B | VIIX vs. ProShares VIX Short Term | VIIX vs. ProShares VIX Mid Term |
| IShares Oil vs. iShares Oil Equipment | IShares Oil vs. iShares Energy ETF | IShares Oil vs. Invesco Dynamic Energy | IShares Oil vs. SPDR SP Oil |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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