Correlation Between IShares SP and LG Artificial
Can any of the company-specific risk be diversified away by investing in both IShares SP and LG Artificial 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 SP and LG Artificial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares SP 500 and LG Artificial Intelligence, you can compare the effects of market volatilities on IShares SP and LG Artificial 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 SP with a short position of LG Artificial. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares SP and LG Artificial.
Diversification Opportunities for IShares SP and LG Artificial
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and AIAI is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding iShares SP 500 and LG Artificial Intelligence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LG Artificial Intell and IShares SP 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 SP 500 are associated (or correlated) with LG Artificial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LG Artificial Intell has no effect on the direction of IShares SP i.e., IShares SP and LG Artificial go up and down completely randomly.
Pair Corralation between IShares SP and LG Artificial
Assuming the 90 days trading horizon IShares SP is expected to generate 2.83 times less return on investment than LG Artificial. But when comparing it to its historical volatility, iShares SP 500 is 2.78 times less risky than LG Artificial. It trades about 0.13 of its potential returns per unit of risk. LG Artificial Intelligence is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,973 in LG Artificial Intelligence on July 20, 2025 and sell it today you would earn a total of 259.00 from holding LG Artificial Intelligence or generate 13.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares SP 500 vs. LG Artificial Intelligence
Performance |
| Timeline |
| iShares SP 500 |
| LG Artificial Intell |
IShares SP and LG Artificial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares SP and LG Artificial
The main advantage of trading using opposite IShares SP and LG Artificial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SP position performs unexpectedly, LG Artificial 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 LG Artificial will offset losses from the drop in LG Artificial's long position.| IShares SP vs. iShares Emerging Asia | IShares SP vs. iShares MSCI Global | IShares SP vs. iShares VII PLC | IShares SP vs. iShares iBonds Dec |
| LG Artificial vs. Vanguard FTSE Emerging | LG Artificial vs. UBS ETF MSCI | LG Artificial vs. Amundi MSCI Semiconductors | LG Artificial vs. VanEck Solana ETN |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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