Two Equities Correlation Analysis
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for IShares Short and NYSE Composite
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and NYSE is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding iShares Short Maturity and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and IShares Short 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 Short Maturity are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of IShares Short i.e., IShares Short and NYSE Composite go up and down completely randomly.
Pair Corralation between IShares Short and NYSE Composite
Given the investment horizon of 90 days iShares Short Maturity is expected to generate 0.18 times more return on investment than NYSE Composite. However, iShares Short Maturity is 5.51 times less risky than NYSE Composite. It trades about -0.09 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.11 per unit of risk. If you would invest 5,020 in iShares Short Maturity on January 26, 2024 and sell it today you would lose (12.00) from holding iShares Short Maturity or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Short Maturity vs. NYSE Composite
Performance |
| Timeline |
IShares Short and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
iShares Short Maturity
Pair trading matchups for IShares Short
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with IShares Short and NYSE Composite
The main advantage of trading using opposite IShares Short and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Short position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| IShares Short vs. iShares ESG 1 5 | IShares Short vs. First Trust Low | IShares Short vs. First Trust Managed | IShares Short vs. First Trust Senior |
| NYSE Composite vs. Aduro Clean Technologies | NYSE Composite vs. Transphorm Technology | NYSE Composite vs. Advanced Micro Devices | NYSE Composite vs. IPG Photonics |
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.
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