Correlation Between IShares Core and 26442EAG5

Can any of the company-specific risk be diversified away by investing in both IShares Core and 26442EAG5 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 Core and 26442EAG5 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between iShares Core SP and DUKE ENERGY OHIO, you can compare the effects of market volatilities on IShares Core and 26442EAG5 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 26442EAG5. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and 26442EAG5.

Diversification Opportunities for IShares Core and 26442EAG5

-0.47

Correlation Coefficient

IShares Core  26442EAG5

Very good diversification

The 3 months correlation between IShares and 26442EAG5 is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and DUKE ENERGY OHIO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUKE ENERGY OHIO 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 26442EAG5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUKE ENERGY OHIO has no effect on the direction of IShares Core i.e., IShares Core and 26442EAG5 go up and down completely randomly.

Pair Corralation between IShares Core and 26442EAG5

Considering the 90-day investment horizon iShares Core SP is expected to under-perform the 26442EAG5. But the etf apears to be less risky and, when comparing its historical volatility, iShares Core SP is 4.6 times less risky than 26442EAG5. The etf trades about -0.11 of its potential returns per unit of risk. The DUKE ENERGY OHIO is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  8,470  in DUKE ENERGY OHIO on October 10, 2024 and sell it today you would earn a total of  192.00  from holding DUKE ENERGY OHIO or generate 2.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	75.0%
Values	Daily Returns

iShares Core SP  vs.  DUKE ENERGY OHIO

iShares Core SP

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Core SP are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, IShares Core is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

DUKE ENERGY OHIO

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in DUKE ENERGY OHIO are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 26442EAG5 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with IShares Core and 26442EAG5

The main advantage of trading using opposite IShares Core and 26442EAG5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, 26442EAG5 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 26442EAG5 will offset losses from the drop in 26442EAG5's long position.

The idea behind iShares Core SP and DUKE ENERGY OHIO 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.

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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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.