Correlation Between IShares Expanded and Ensign
Can any of the company-specific risk be diversified away by investing in both IShares Expanded and Ensign 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 Expanded and Ensign into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Expanded Tech and The Ensign Group, you can compare the effects of market volatilities on IShares Expanded and Ensign 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 Expanded with a short position of Ensign. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Expanded and Ensign.
Diversification Opportunities for IShares Expanded and Ensign
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between IShares and Ensign is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding iShares Expanded Tech and The Ensign Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ensign Group and IShares Expanded 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 Expanded Tech are associated (or correlated) with Ensign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ensign Group has no effect on the direction of IShares Expanded i.e., IShares Expanded and Ensign go up and down completely randomly.
Pair Corralation between IShares Expanded and Ensign
Considering the 90-day investment horizon iShares Expanded Tech is expected to generate 1.07 times more return on investment than Ensign. However, IShares Expanded is 1.07 times more volatile than The Ensign Group. It trades about 0.07 of its potential returns per unit of risk. The Ensign Group is currently generating about -0.09 per unit of risk. If you would invest 8,666 in iShares Expanded Tech on February 28, 2024 and sell it today you would earn a total of 278.00 from holding iShares Expanded Tech or generate 3.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.12% |
Values | Daily Returns |
iShares Expanded Tech vs. The Ensign Group
Performance |
Timeline |
iShares Expanded Tech |
Ensign Group |
IShares Expanded and Ensign Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares Expanded and Ensign
The main advantage of trading using opposite IShares Expanded and Ensign positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Expanded position performs unexpectedly, Ensign 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 Ensign will offset losses from the drop in Ensign's long position.IShares Expanded vs. ARK Autonomous Technology | IShares Expanded vs. ARK Next Generation | IShares Expanded vs. ARK Genomic Revolution | IShares Expanded vs. ARK Innovation ETF |
Ensign vs. X FAB Silicon Foundries | Ensign vs. SYSTEMAIR AB | Ensign vs. QLEANAIR AB SK 50 | Ensign vs. Finnair Oyj |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
CEOs Directory Screen CEOs from public companies around the world | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |