Correlation Between IShares EUR and IShares Global
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By analyzing existing cross correlation between iShares EUR Cash and iShares Global AAA AA, you can compare the effects of market volatilities on IShares EUR and IShares Global 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 EUR with a short position of IShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares EUR and IShares Global.
Diversification Opportunities for IShares EUR and IShares Global
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and IShares is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding iShares EUR Cash and iShares Global AAA AA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Global AAA and IShares EUR 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 EUR Cash are associated (or correlated) with IShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Global AAA has no effect on the direction of IShares EUR i.e., IShares EUR and IShares Global go up and down completely randomly.
Pair Corralation between IShares EUR and IShares Global
Assuming the 90 days trading horizon iShares EUR Cash is expected to generate 0.12 times more return on investment than IShares Global. However, iShares EUR Cash is 8.03 times less risky than IShares Global. It trades about 0.36 of its potential returns per unit of risk. iShares Global AAA AA is currently generating about 0.01 per unit of risk. If you would invest 1,500 in iShares EUR Cash on October 29, 2024 and sell it today you would earn a total of 8.00 from holding iShares EUR Cash or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 15.66% |
| Values | Daily Returns |
iShares EUR Cash vs. iShares Global AAA AA
Performance |
| Timeline |
| iShares EUR Cash |
| iShares Global AAA |
IShares EUR and IShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares EUR and IShares Global
The main advantage of trading using opposite IShares EUR and IShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares EUR position performs unexpectedly, IShares Global 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 Global will offset losses from the drop in IShares Global's long position.| IShares EUR vs. iShares Govt Bond | IShares EUR vs. iShares Global AAA AA | IShares EUR vs. iShares Smart City | IShares EUR vs. iShares Broad High |
| IShares Global vs. iShares Govt Bond | IShares Global vs. iShares Smart City | IShares Global vs. iShares Broad High | IShares Global vs. iShares Emerging Markets |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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