Correlation Between IShares International and Simplify Managed
Can any of the company-specific risk be diversified away by investing in both IShares International and Simplify Managed 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 International and Simplify Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares International Dividend and Simplify Managed Futures, you can compare the effects of market volatilities on IShares International and Simplify Managed 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 International with a short position of Simplify Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares International and Simplify Managed.
Diversification Opportunities for IShares International and Simplify Managed
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and Simplify is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding iShares International Dividend and Simplify Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simplify Managed Futures and IShares International 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 International Dividend are associated (or correlated) with Simplify Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simplify Managed Futures has no effect on the direction of IShares International i.e., IShares International and Simplify Managed go up and down completely randomly.
Pair Corralation between IShares International and Simplify Managed
Given the investment horizon of 90 days iShares International Dividend is expected to generate 0.56 times more return on investment than Simplify Managed. However, iShares International Dividend is 1.8 times less risky than Simplify Managed. It trades about 0.12 of its potential returns per unit of risk. Simplify Managed Futures is currently generating about -0.03 per unit of risk. If you would invest 7,746 in iShares International Dividend on July 27, 2025 and sell it today you would earn a total of 342.00 from holding iShares International Dividend or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares International Dividend vs. Simplify Managed Futures
Performance |
| Timeline |
| iShares International |
| Simplify Managed Futures |
IShares International and Simplify Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares International and Simplify Managed
The main advantage of trading using opposite IShares International and Simplify Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares International position performs unexpectedly, Simplify Managed 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 Simplify Managed will offset losses from the drop in Simplify Managed's long position.| IShares International vs. iShares Micro Cap ETF | IShares International vs. iShares Asia 50 | IShares International vs. First Trust Mid | IShares International vs. First Trust Large |
| Simplify Managed vs. ProShares Ultra Silver | Simplify Managed vs. WisdomTree 9060 Balanced | Simplify Managed vs. iShares International Dividend | Simplify Managed vs. Columbia EM Core |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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