Correlation Between Series Portfolios and IShares SP
Can any of the company-specific risk be diversified away by investing in both Series Portfolios and IShares SP 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 Series Portfolios and IShares SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Series Portfolios Trust and iShares SP Small Cap, you can compare the effects of market volatilities on Series Portfolios and IShares SP 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 Series Portfolios with a short position of IShares SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Series Portfolios and IShares SP.
Diversification Opportunities for Series Portfolios and IShares SP
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Series and IShares is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Series Portfolios Trust and iShares SP Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SP Small and Series Portfolios 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 Series Portfolios Trust are associated (or correlated) with IShares SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SP Small has no effect on the direction of Series Portfolios i.e., Series Portfolios and IShares SP go up and down completely randomly.
Pair Corralation between Series Portfolios and IShares SP
Given the investment horizon of 90 days Series Portfolios Trust is expected to generate 0.99 times more return on investment than IShares SP. However, Series Portfolios Trust is 1.01 times less risky than IShares SP. It trades about 0.27 of its potential returns per unit of risk. iShares SP Small Cap is currently generating about 0.26 per unit of risk. If you would invest 3,179 in Series Portfolios Trust on February 13, 2024 and sell it today you would earn a total of 165.00 from holding Series Portfolios Trust or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Series Portfolios Trust vs. iShares SP Small Cap
Performance |
| Timeline |
| Series Portfolios Trust |
| iShares SP Small |
Series Portfolios and IShares SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Series Portfolios and IShares SP
The main advantage of trading using opposite Series Portfolios and IShares SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Series Portfolios position performs unexpectedly, IShares SP 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 IShares SP will offset losses from the drop in IShares SP's long position.| Series Portfolios vs. Dimensional ETF Trust | Series Portfolios vs. Vanguard Small Cap Index | Series Portfolios vs. First Trust Multi Manager | Series Portfolios vs. Vanguard SP Small Cap |
| IShares SP vs. iShares SP Mid Cap | IShares SP vs. iShares SP Small Cap | IShares SP vs. iShares SP Mid Cap | IShares SP vs. iShares SP 500 |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |