Correlation Between IShares Commodity and Abrdn Bloomberg
Can any of the company-specific risk be diversified away by investing in both IShares Commodity and Abrdn Bloomberg 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 Commodity and Abrdn Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Commodity Curve and abrdn Bloomberg All, you can compare the effects of market volatilities on IShares Commodity and Abrdn Bloomberg 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 Commodity with a short position of Abrdn Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Commodity and Abrdn Bloomberg.
Diversification Opportunities for IShares Commodity and Abrdn Bloomberg
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Abrdn is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding iShares Commodity Curve and abrdn Bloomberg All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Bloomberg All and IShares Commodity 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 Commodity Curve are associated (or correlated) with Abrdn Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Bloomberg All has no effect on the direction of IShares Commodity i.e., IShares Commodity and Abrdn Bloomberg go up and down completely randomly.
Pair Corralation between IShares Commodity and Abrdn Bloomberg
Given the investment horizon of 90 days IShares Commodity is expected to generate 1.49 times less return on investment than Abrdn Bloomberg. But when comparing it to its historical volatility, iShares Commodity Curve is 1.25 times less risky than Abrdn Bloomberg. It trades about 0.15 of its potential returns per unit of risk. abrdn Bloomberg All is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,998 in abrdn Bloomberg All on September 12, 2024 and sell it today you would earn a total of 50.00 from holding abrdn Bloomberg All or generate 2.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
iShares Commodity Curve vs. abrdn Bloomberg All
Performance |
Timeline |
iShares Commodity Curve |
abrdn Bloomberg All |
IShares Commodity and Abrdn Bloomberg Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares Commodity and Abrdn Bloomberg
The main advantage of trading using opposite IShares Commodity and Abrdn Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Commodity position performs unexpectedly, Abrdn Bloomberg 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 Abrdn Bloomberg will offset losses from the drop in Abrdn Bloomberg's long position.IShares Commodity vs. iShares Bloomberg Roll | IShares Commodity vs. USCF SummerHaven Dynamic | IShares Commodity vs. abrdn Bloomberg All | IShares Commodity vs. GraniteShares Bloomberg Commodity |
Abrdn Bloomberg vs. GraniteShares Bloomberg Commodity | Abrdn Bloomberg vs. abrdn Bloomberg All | Abrdn Bloomberg vs. PIMCO 15 Year | Abrdn Bloomberg vs. Invesco Optimum Yield |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Stocks Directory Find actively traded stocks across global markets |