Correlation Between IShares SP and 21Shares Staking
Can any of the company-specific risk be diversified away by investing in both IShares SP and 21Shares Staking 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 SP and 21Shares Staking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares SP 500 and 21Shares Staking Basket, you can compare the effects of market volatilities on IShares SP and 21Shares Staking 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 SP with a short position of 21Shares Staking. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares SP and 21Shares Staking.
Diversification Opportunities for IShares SP and 21Shares Staking
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IShares and 21Shares is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding iShares SP 500 and 21Shares Staking Basket in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21Shares Staking Basket and IShares SP 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 SP 500 are associated (or correlated) with 21Shares Staking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Shares Staking Basket has no effect on the direction of IShares SP i.e., IShares SP and 21Shares Staking go up and down completely randomly.
Pair Corralation between IShares SP and 21Shares Staking
Assuming the 90 days trading horizon iShares SP 500 is expected to generate 0.23 times more return on investment than 21Shares Staking. However, iShares SP 500 is 4.4 times less risky than 21Shares Staking. It trades about -0.13 of its potential returns per unit of risk. 21Shares Staking Basket is currently generating about -0.14 per unit of risk. If you would invest 5,661 in iShares SP 500 on December 23, 2024 and sell it today you would lose (467.00) from holding iShares SP 500 or give up 8.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
iShares SP 500 vs. 21Shares Staking Basket
Performance |
Timeline |
iShares SP 500 |
21Shares Staking Basket |
IShares SP and 21Shares Staking Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares SP and 21Shares Staking
The main advantage of trading using opposite IShares SP and 21Shares Staking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SP position performs unexpectedly, 21Shares Staking 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 21Shares Staking will offset losses from the drop in 21Shares Staking's long position.IShares SP vs. iShares MSCI EM | IShares SP vs. iShares III Public | IShares SP vs. iShares Core MSCI | IShares SP vs. iShares France Govt |
21Shares Staking vs. 21Shares Sui Staking | 21Shares Staking vs. 21Shares Crypto Basket | 21Shares Staking vs. 21Shares Arbitrum ETP | 21Shares Staking vs. LG Russell 2000 |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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