IShares Trust Correlations
The correlation of IShares Trust is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as IShares Trust moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if iShares Trust moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Check out World Market Map to better understand how to build diversified portfolios. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in board of governors. IShares |
The ability to find closely correlated positions to IShares Trust could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace IShares Trust when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back IShares Trust - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling iShares Trust to buy it.
Related Correlations Analysis
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Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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IShares Trust Competition Risk-Adjusted Indicators
There is a big difference between IShares Etf performing well and IShares Trust ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze IShares Trust's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| META | 1.49 | 0.00 | 0.00 | 0.00 | 2.40 | 3.21 | 13.90 | |||
| MSFT | 0.95 | 0.07 | 0.06 | 0.09 | 1.22 | 1.91 | 6.04 | |||
| UBER | 1.51 | (0.19) | 0.00 | (0.17) | 0.00 | 2.64 | 9.02 | |||
| F | 1.35 | (0.02) | 0.00 | 0.00 | 1.90 | 3.06 | 10.93 | |||
| T | 0.80 | 0.09 | 0.10 | 0.17 | 0.80 | 1.89 | 4.56 | |||
| A | 1.28 | (0.14) | 0.00 | (0.10) | 0.00 | 2.12 | 13.61 | |||
| CRM | 1.46 | (0.31) | 0.00 | (0.26) | 0.00 | 2.63 | 23.62 | |||
| JPM | 0.94 | 0.08 | 0.05 | 0.07 | 1.50 | 1.94 | 8.41 | |||
| MRK | 0.70 | 0.08 | 0.10 | 0.15 | 0.67 | 2.29 | 7.59 | |||
| XOM | 0.84 | 0.09 | 0.07 | 0.12 | 1.01 | 1.77 | 5.27 |
IShares Trust Related Equities
One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with IShares Trust etf to make a market-neutral strategy. Peer analysis of IShares Trust could also be used in its relative valuation, which is a method of valuing IShares Trust by comparing valuation metrics with similar companies.
| Risk & Return | Correlation |
Additional Information and Resources on Investing in IShares Etf
When determining whether iShares Trust is a strong investment it is important to analyze IShares Trust's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact IShares Trust's future performance. For an informed investment choice regarding IShares Etf, refer to the following important reports:Check out World Market Map to better understand how to build diversified portfolios, which includes a position in iShares Trust . Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.