Correlation Between XWEB and IShares Expanded
Can any of the company-specific risk be diversified away by investing in both XWEB and IShares Expanded 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 XWEB and IShares Expanded into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XWEB and iShares Expanded Tech, you can compare the effects of market volatilities on XWEB and IShares Expanded 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 XWEB with a short position of IShares Expanded. Check out your portfolio center. Please also check ongoing floating volatility patterns of XWEB and IShares Expanded.
Diversification Opportunities for XWEB and IShares Expanded
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between XWEB and IShares is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding XWEB and iShares Expanded Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Expanded Tech and XWEB 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 XWEB are associated (or correlated) with IShares Expanded. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Expanded Tech has no effect on the direction of XWEB i.e., XWEB and IShares Expanded go up and down completely randomly.
Pair Corralation between XWEB and IShares Expanded
If you would invest 9,005 in iShares Expanded Tech on August 26, 2024 and sell it today you would earn a total of 1,090 from holding iShares Expanded Tech or generate 12.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 0.79% |
| Values | Daily Returns |
XWEB vs. iShares Expanded Tech
Performance |
| Timeline |
| XWEB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares Expanded Tech |
XWEB and IShares Expanded Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XWEB and IShares Expanded
The main advantage of trading using opposite XWEB and IShares Expanded positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XWEB position performs unexpectedly, IShares Expanded 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 Expanded will offset losses from the drop in IShares Expanded's long position.| XWEB vs. SPDR FactSet Innovative | XWEB vs. SPDR SP Software | XWEB vs. SPDR Morgan Stanley | XWEB vs. SPDR SP Health |
| IShares Expanded vs. iShares Global Tech | IShares Expanded vs. iShares Technology ETF | IShares Expanded vs. iShares Consumer Discretionary | IShares Expanded vs. iShares Expanded Tech Software |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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