Correlation Between IShares Semiconductor and Kurv Technology

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

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

Diversification Opportunities for IShares Semiconductor and Kurv Technology

-0.08

Correlation Coefficient

IShares Semiconductor  Kurv Technology

Good diversification

The 3 months correlation between IShares and Kurv is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding iShares Semiconductor ETF and Kurv Technology Titans in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kurv Technology Titans and IShares Semiconductor 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 Semiconductor ETF are associated (or correlated) with Kurv Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kurv Technology Titans has no effect on the direction of IShares Semiconductor i.e., IShares Semiconductor and Kurv Technology go up and down completely randomly.

Pair Corralation between IShares Semiconductor and Kurv Technology

Given the investment horizon of 90 days IShares Semiconductor is expected to generate 1.32 times less return on investment than Kurv Technology. In addition to that, IShares Semiconductor is 1.42 times more volatile than Kurv Technology Titans. It trades about 0.04 of its total potential returns per unit of risk. Kurv Technology Titans is currently generating about 0.08 per unit of volatility. If you would invest  2,455  in Kurv Technology Titans on September 12, 2024 and sell it today you would earn a total of  281.00  from holding Kurv Technology Titans or generate 11.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	28.13%
Values	Daily Returns

iShares Semiconductor ETF  vs.  Kurv Technology Titans

iShares Semiconductor ETF

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iShares Semiconductor ETF has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, IShares Semiconductor is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Kurv Technology Titans

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kurv Technology Titans are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Kurv Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IShares Semiconductor and Kurv Technology

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

The idea behind iShares Semiconductor ETF and Kurv Technology Titans 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 Global Correlations module to find global opportunities by holding instruments from different markets.