Correlation Between IShares France and IShares VII
Can any of the company-specific risk be diversified away by investing in both IShares France and IShares VII 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 IShares France and IShares VII into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares France Government and iShares VII Public, you can compare the effects of market volatilities on IShares France and IShares VII 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 France with a short position of IShares VII. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares France and IShares VII.
Diversification Opportunities for IShares France and IShares VII
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and IShares is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding iShares France Government and iShares VII Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares VII Public and IShares France 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 France Government are associated (or correlated) with IShares VII. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares VII Public has no effect on the direction of IShares France i.e., IShares France and IShares VII go up and down completely randomly.
Pair Corralation between IShares France and IShares VII
Assuming the 90 days trading horizon iShares France Government is expected to under-perform the IShares VII. In addition to that, IShares France is 1.2 times more volatile than iShares VII Public. It trades about -0.01 of its total potential returns per unit of risk. iShares VII Public is currently generating about -0.01 per unit of volatility. If you would invest 11,984 in iShares VII Public on February 20, 2024 and sell it today you would lose (24.00) from holding iShares VII Public or give up 0.2% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
iShares France Government vs. iShares VII Public
Performance |
Timeline |
iShares France Government |
iShares VII Public |
IShares France and IShares VII Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares France and IShares VII
The main advantage of trading using opposite IShares France and IShares VII positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares France position performs unexpectedly, IShares VII 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 VII will offset losses from the drop in IShares VII's long position.IShares France vs. iShares III Public | IShares France vs. iShares Core MSCI | IShares France vs. iShares Edge MSCI | IShares France vs. iShares Core FTSE |
IShares VII vs. iShares III Public | IShares VII vs. iShares Core MSCI | IShares VII vs. iShares France Government | IShares VII vs. iShares Edge MSCI |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |