Correlation Between IShares Utilities and EA Bridgeway
Can any of the company-specific risk be diversified away by investing in both IShares Utilities and EA Bridgeway 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 Utilities and EA Bridgeway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Utilities ETF and EA Bridgeway Omni, you can compare the effects of market volatilities on IShares Utilities and EA Bridgeway 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 Utilities with a short position of EA Bridgeway. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Utilities and EA Bridgeway.
Diversification Opportunities for IShares Utilities and EA Bridgeway
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and BSVO is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding iShares Utilities ETF and EA Bridgeway Omni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Bridgeway Omni and IShares Utilities 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 Utilities ETF are associated (or correlated) with EA Bridgeway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Bridgeway Omni has no effect on the direction of IShares Utilities i.e., IShares Utilities and EA Bridgeway go up and down completely randomly.
Pair Corralation between IShares Utilities and EA Bridgeway
Considering the 90-day investment horizon IShares Utilities is expected to generate 1.03 times less return on investment than EA Bridgeway. But when comparing it to its historical volatility, iShares Utilities ETF is 1.69 times less risky than EA Bridgeway. It trades about 0.08 of its potential returns per unit of risk. EA Bridgeway Omni is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,175 in EA Bridgeway Omni on August 17, 2025 and sell it today you would earn a total of 70.00 from holding EA Bridgeway Omni or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Utilities ETF vs. EA Bridgeway Omni
Performance |
| Timeline |
| iShares Utilities ETF |
| EA Bridgeway Omni |
IShares Utilities and EA Bridgeway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Utilities and EA Bridgeway
The main advantage of trading using opposite IShares Utilities and EA Bridgeway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Utilities position performs unexpectedly, EA Bridgeway 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 EA Bridgeway will offset losses from the drop in EA Bridgeway's long position.| IShares Utilities vs. iShares Industrials ETF | IShares Utilities vs. iShares Broker Dealers Securities | IShares Utilities vs. iShares MSCI Emerging | IShares Utilities vs. iShares MSCI Australia |
| EA Bridgeway vs. Sprott Uranium Miners | EA Bridgeway vs. Invesco SP SmallCap | EA Bridgeway vs. WisdomTree Emerging Markets | EA Bridgeway vs. First Trust Utilities |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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