Correlation Between IShares Exponential and Themes Airlines
Can any of the company-specific risk be diversified away by investing in both IShares Exponential and Themes Airlines 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 Exponential and Themes Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Exponential Technologies and Themes Airlines ETF, you can compare the effects of market volatilities on IShares Exponential and Themes Airlines 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 Exponential with a short position of Themes Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Exponential and Themes Airlines.
Diversification Opportunities for IShares Exponential and Themes Airlines
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and Themes is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding iShares Exponential Technologi and Themes Airlines ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themes Airlines ETF and IShares Exponential 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 Exponential Technologies are associated (or correlated) with Themes Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themes Airlines ETF has no effect on the direction of IShares Exponential i.e., IShares Exponential and Themes Airlines go up and down completely randomly.
Pair Corralation between IShares Exponential and Themes Airlines
Allowing for the 90-day total investment horizon IShares Exponential is expected to generate 2.36 times less return on investment than Themes Airlines. But when comparing it to its historical volatility, iShares Exponential Technologies is 1.14 times less risky than Themes Airlines. It trades about 0.05 of its potential returns per unit of risk. Themes Airlines ETF is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,547 in Themes Airlines ETF on September 1, 2024 and sell it today you would earn a total of 417.00 from holding Themes Airlines ETF or generate 16.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
iShares Exponential Technologi vs. Themes Airlines ETF
Performance |
| Timeline |
| iShares Exponential |
| Themes Airlines ETF |
IShares Exponential and Themes Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Exponential and Themes Airlines
The main advantage of trading using opposite IShares Exponential and Themes Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Exponential position performs unexpectedly, Themes Airlines 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 Themes Airlines will offset losses from the drop in Themes Airlines' long position.| IShares Exponential vs. SPDR Kensho New | IShares Exponential vs. Global X FinTech | IShares Exponential vs. Invesco SP SmallCap | IShares Exponential vs. iShares Genomics Immunology |
| Themes Airlines vs. First Trust Exchange Traded | Themes Airlines vs. Ultimus Managers Trust | Themes Airlines vs. Horizon Kinetics Medical | Themes Airlines vs. Harbor Health Care |
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 CEOs Directory module to screen CEOs from public companies around the world.
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