Correlation Between Financial Industries and Ishares Municipal
Can any of the company-specific risk be diversified away by investing in both Financial Industries and Ishares Municipal 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 Financial Industries and Ishares Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Financial Industries Fund and Ishares Municipal Bond, you can compare the effects of market volatilities on Financial Industries and Ishares Municipal 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 Financial Industries with a short position of Ishares Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial Industries and Ishares Municipal.
Diversification Opportunities for Financial Industries and Ishares Municipal
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FINANCIAL and Ishares is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Financial Industries Fund and Ishares Municipal Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ishares Municipal Bond and Financial Industries 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 Financial Industries Fund are associated (or correlated) with Ishares Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ishares Municipal Bond has no effect on the direction of Financial Industries i.e., Financial Industries and Ishares Municipal go up and down completely randomly.
Pair Corralation between Financial Industries and Ishares Municipal
If you would invest 1,561 in Financial Industries Fund on September 8, 2025 and sell it today you would earn a total of 52.00 from holding Financial Industries Fund or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Financial Industries Fund vs. Ishares Municipal Bond
Performance |
| Timeline |
| Financial Industries |
| Ishares Municipal Bond |
Financial Industries and Ishares Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financial Industries and Ishares Municipal
The main advantage of trading using opposite Financial Industries and Ishares Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financial Industries position performs unexpectedly, Ishares Municipal 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 Municipal will offset losses from the drop in Ishares Municipal's long position.| Financial Industries vs. Europac Gold Fund | Financial Industries vs. Franklin Gold Precious | Financial Industries vs. Fidelity Advisor Gold | Financial Industries vs. Gold And Precious |
| Ishares Municipal vs. Blackrock California Municipal | Ishares Municipal vs. Blackrock Balanced Capital | Ishares Municipal vs. Mkeax | Ishares Municipal vs. Blackrock Eurofund Class |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |