Correlation Between IShares Core and Psagot Index
Specify exactly 2 symbols:
By analyzing existing cross correlation between iShares Core SP and Psagot Index Funds, you can compare the effects of market volatilities on IShares Core and Psagot Index 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 Core with a short position of Psagot Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Psagot Index.
Diversification Opportunities for IShares Core and Psagot Index
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and Psagot is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and Psagot Index Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Psagot Index Funds and IShares Core 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 Core SP are associated (or correlated) with Psagot Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Psagot Index Funds has no effect on the direction of IShares Core i.e., IShares Core and Psagot Index go up and down completely randomly.
Pair Corralation between IShares Core and Psagot Index
Considering the 90-day investment horizon iShares Core SP is expected to generate 0.81 times more return on investment than Psagot Index. However, iShares Core SP is 1.24 times less risky than Psagot Index. It trades about -0.24 of its potential returns per unit of risk. Psagot Index Funds is currently generating about -0.2 per unit of risk. If you would invest 5,944 in iShares Core SP on January 20, 2024 and sell it today you would lose (286.00) from holding iShares Core SP or give up 4.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 78.26% |
| Values | Daily Returns |
iShares Core SP vs. Psagot Index Funds
Performance |
| Timeline |
| iShares Core SP |
| Psagot Index Funds |
IShares Core and Psagot Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Psagot Index
The main advantage of trading using opposite IShares Core and Psagot Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, Psagot Index 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 Psagot Index will offset losses from the drop in Psagot Index's long position.| IShares Core vs. Vanguard Small Cap Index | IShares Core vs. Vanguard Large Cap Index | IShares Core vs. Vanguard Small Cap Growth | IShares Core vs. Vanguard Small Cap Value |
| Psagot Index vs. Psagot ETF 00 | Psagot Index vs. Psagot Index Funds | Psagot Index vs. Psagot Index Funds | Psagot Index vs. Psagot Index Funds |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |