Correlation Between IShares NASDAQ and Silver Bullion
Can any of the company-specific risk be diversified away by investing in both IShares NASDAQ and Silver Bullion 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 NASDAQ and Silver Bullion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares NASDAQ 100 and Silver Bullion Trust, you can compare the effects of market volatilities on IShares NASDAQ and Silver Bullion 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 NASDAQ with a short position of Silver Bullion. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares NASDAQ and Silver Bullion.
Diversification Opportunities for IShares NASDAQ and Silver Bullion
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and Silver is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding iShares NASDAQ 100 and Silver Bullion Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Bullion Trust and IShares NASDAQ 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 NASDAQ 100 are associated (or correlated) with Silver Bullion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Bullion Trust has no effect on the direction of IShares NASDAQ i.e., IShares NASDAQ and Silver Bullion go up and down completely randomly.
Pair Corralation between IShares NASDAQ and Silver Bullion
Assuming the 90 days trading horizon IShares NASDAQ is expected to generate 7.8 times less return on investment than Silver Bullion. In addition to that, IShares NASDAQ is 1.02 times more volatile than Silver Bullion Trust. It trades about 0.03 of its total potential returns per unit of risk. Silver Bullion Trust is currently generating about 0.23 per unit of volatility. If you would invest 1,533 in Silver Bullion Trust on October 21, 2024 and sell it today you would earn a total of 80.00 from holding Silver Bullion Trust or generate 5.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares NASDAQ 100 vs. Silver Bullion Trust
Performance |
| Timeline |
| iShares NASDAQ 100 |
| Silver Bullion Trust |
IShares NASDAQ and Silver Bullion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares NASDAQ and Silver Bullion
The main advantage of trading using opposite IShares NASDAQ and Silver Bullion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares NASDAQ position performs unexpectedly, Silver Bullion 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 Silver Bullion will offset losses from the drop in Silver Bullion's long position.| IShares NASDAQ vs. iShares Core SP | IShares NASDAQ vs. iShares SPTSX Capped | IShares NASDAQ vs. BMO NASDAQ 100 | IShares NASDAQ vs. Vanguard SP 500 |
| Silver Bullion vs. Purpose Gold Bullion | Silver Bullion vs. iShares Silver Bullion | Silver Bullion vs. Purpose Diversified Real | Silver Bullion vs. Purpose Premium Yield |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |