Correlation Between IShares Cohen and MORE

Can any of the company-specific risk be diversified away by investing in both IShares Cohen and MORE 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 Cohen and MORE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between iShares Cohen Steers and MORE, you can compare the effects of market volatilities on IShares Cohen and MORE 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 Cohen with a short position of MORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Cohen and MORE.

Diversification Opportunities for IShares Cohen and MORE

0.0

Correlation Coefficient

IShares Cohen  MORE

Pay attention - limited upside

The 3 months correlation between IShares and MORE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares Cohen Steers and MORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MORE and IShares Cohen 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 Cohen Steers are associated (or correlated) with MORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MORE has no effect on the direction of IShares Cohen i.e., IShares Cohen and MORE go up and down completely randomly.

Pair Corralation between IShares Cohen and MORE

If you would invest  6,031  in iShares Cohen Steers on December 26, 2024 and sell it today you would earn a total of  69.50  from holding iShares Cohen Steers or generate 1.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

iShares Cohen Steers  vs.  MORE

iShares Cohen Steers

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Cohen Steers are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental indicators, IShares Cohen is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

MORE

Risk-Adjusted Performance

Very Weak

Over the last 90 days MORE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, MORE is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with IShares Cohen and MORE

The main advantage of trading using opposite IShares Cohen and MORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Cohen position performs unexpectedly, MORE 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 MORE will offset losses from the drop in MORE's long position.

The idea behind iShares Cohen Steers and MORE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.