Correlation Between IShares Expanded and Themes Cybersecurity
Can any of the company-specific risk be diversified away by investing in both IShares Expanded and Themes Cybersecurity 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 Expanded and Themes Cybersecurity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Expanded Tech Software and Themes Cybersecurity ETF, you can compare the effects of market volatilities on IShares Expanded and Themes Cybersecurity 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 Expanded with a short position of Themes Cybersecurity. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Expanded and Themes Cybersecurity.
Diversification Opportunities for IShares Expanded and Themes Cybersecurity
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Themes is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding iShares Expanded Tech Software and Themes Cybersecurity ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themes Cybersecurity ETF and IShares Expanded 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 Expanded Tech Software are associated (or correlated) with Themes Cybersecurity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themes Cybersecurity ETF has no effect on the direction of IShares Expanded i.e., IShares Expanded and Themes Cybersecurity go up and down completely randomly.
Pair Corralation between IShares Expanded and Themes Cybersecurity
Considering the 90-day investment horizon iShares Expanded Tech Software is expected to generate 0.9 times more return on investment than Themes Cybersecurity. However, iShares Expanded Tech Software is 1.11 times less risky than Themes Cybersecurity. It trades about -0.03 of its potential returns per unit of risk. Themes Cybersecurity ETF is currently generating about -0.03 per unit of risk. If you would invest 11,240 in iShares Expanded Tech Software on September 11, 2025 and sell it today you would lose (282.00) from holding iShares Expanded Tech Software or give up 2.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Expanded Tech Software vs. Themes Cybersecurity ETF
Performance |
| Timeline |
| iShares Expanded Tech |
| Themes Cybersecurity ETF |
IShares Expanded and Themes Cybersecurity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Expanded and Themes Cybersecurity
The main advantage of trading using opposite IShares Expanded and Themes Cybersecurity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Expanded position performs unexpectedly, Themes Cybersecurity 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 Themes Cybersecurity will offset losses from the drop in Themes Cybersecurity's long position.| IShares Expanded vs. iShares ESG Aware | IShares Expanded vs. iShares MSCI EAFE | IShares Expanded vs. Vanguard Russell 1000 | IShares Expanded vs. Avantis Equity ETF |
| Themes Cybersecurity vs. Global X Funds | Themes Cybersecurity vs. First Trust Exchange Traded | Themes Cybersecurity vs. Global X SP | Themes Cybersecurity vs. VanEck ETF Trust |
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 CEOs Directory module to screen CEOs from public companies around the world.
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