Correlation Between US Commodity and IShares Core
Can any of the company-specific risk be diversified away by investing in both US Commodity 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 US Commodity and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Commodity Funds and iShares Core SP, you can compare the effects of market volatilities on US Commodity 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 US Commodity with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Commodity and IShares Core.
Diversification Opportunities for US Commodity and IShares Core
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between USOU and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding US Commodity Funds and iShares Core SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core SP and US Commodity 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 US Commodity Funds 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 SP has no effect on the direction of US Commodity i.e., US Commodity and IShares Core go up and down completely randomly.
Pair Corralation between US Commodity and IShares Core
If you would invest (100.00) in US Commodity Funds on January 25, 2024 and sell it today you would earn a total of 100.00 from holding US Commodity Funds or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
US Commodity Funds vs. iShares Core SP
Performance |
| Timeline |
| US Commodity Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares Core SP |
US Commodity and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Commodity and IShares Core
The main advantage of trading using opposite US Commodity and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Commodity 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.| US Commodity vs. Zillow Group Class | US Commodity vs. Northern Lights | US Commodity vs. VanEck Vectors Moodys | US Commodity vs. BZDYF |
| IShares Core vs. SPDR MSCI EAFE | IShares Core vs. SPDR MSCI Emerging | IShares Core vs. SPDR Russell 1000 | IShares Core vs. SPDR Russell 1000 |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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