Correlation Between IShares Exponential and AdvisorShares Vice

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

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

Diversification Opportunities for IShares Exponential and AdvisorShares Vice

0.78

Correlation Coefficient

IShares Exponential  AdvisorShares Vice

Poor diversification

The 3 months correlation between IShares and AdvisorShares is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding iShares Exponential Technologi and AdvisorShares Vice ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares Vice ETF and IShares Exponential 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 Exponential Technologies are associated (or correlated) with AdvisorShares Vice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares Vice ETF has no effect on the direction of IShares Exponential i.e., IShares Exponential and AdvisorShares Vice go up and down completely randomly.

Pair Corralation between IShares Exponential and AdvisorShares Vice

Allowing for the 90-day total investment horizon iShares Exponential Technologies is expected to under-perform the AdvisorShares Vice. In addition to that, IShares Exponential is 1.02 times more volatile than AdvisorShares Vice ETF. It trades about -0.04 of its total potential returns per unit of risk. AdvisorShares Vice ETF is currently generating about 0.01 per unit of volatility. If you would invest  3,146  in AdvisorShares Vice ETF on December 30, 2024 and sell it today you would earn a total of  7.00  from holding AdvisorShares Vice ETF or generate 0.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

iShares Exponential Technologi  vs.  AdvisorShares Vice ETF

iShares Exponential

Risk-Adjusted Performance

Very Weak

Over the last 90 days iShares Exponential Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, IShares Exponential is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

AdvisorShares Vice ETF

Risk-Adjusted Performance

Very Weak

Over the last 90 days AdvisorShares Vice ETF has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, AdvisorShares Vice 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 Exponential and AdvisorShares Vice

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

The idea behind iShares Exponential Technologies and AdvisorShares Vice ETF 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.