Correlation Between AdvisorShares and IShares Core

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both AdvisorShares and IShares Core 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 AdvisorShares and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AdvisorShares and iShares Core Aggregate, you can compare the effects of market volatilities on AdvisorShares and IShares Core 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 AdvisorShares with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of AdvisorShares and IShares Core.

Diversification Opportunities for AdvisorShares and IShares Core

0.31
  Correlation Coefficient

Weak diversification

The 3 months correlation between AdvisorShares and IShares is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding AdvisorShares and iShares Core Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core Aggregate and AdvisorShares 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 AdvisorShares are associated (or correlated) with IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core Aggregate has no effect on the direction of AdvisorShares i.e., AdvisorShares and IShares Core go up and down completely randomly.

Pair Corralation between AdvisorShares and IShares Core

If you would invest  2,272  in AdvisorShares on January 26, 2024 and sell it today you would earn a total of  0.00  from holding AdvisorShares or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy4.55%
ValuesDaily Returns

AdvisorShares  vs.  iShares Core Aggregate

 Performance 
       Timeline  
AdvisorShares 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days AdvisorShares has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, AdvisorShares is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
iShares Core Aggregate 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days iShares Core Aggregate has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, IShares Core is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

AdvisorShares and IShares Core Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AdvisorShares and IShares Core

The main advantage of trading using opposite AdvisorShares and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AdvisorShares position performs unexpectedly, IShares Core 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 Core will offset losses from the drop in IShares Core's long position.
The idea behind AdvisorShares and iShares Core Aggregate pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Complementary Tools

Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
CEOs Directory
Screen CEOs from public companies around the world
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity