Correlation Between IShares Financials and EA Series
Can any of the company-specific risk be diversified away by investing in both IShares Financials and EA Series 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 Financials and EA Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Financials ETF and EA Series Trust, you can compare the effects of market volatilities on IShares Financials and EA Series 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 Financials with a short position of EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Financials and EA Series.
Diversification Opportunities for IShares Financials and EA Series
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and DRLL is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding iShares Financials ETF and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust and IShares Financials 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 Financials ETF are associated (or correlated) with EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of IShares Financials i.e., IShares Financials and EA Series go up and down completely randomly.
Pair Corralation between IShares Financials and EA Series
Considering the 90-day investment horizon iShares Financials ETF is expected to generate 0.7 times more return on investment than EA Series. However, iShares Financials ETF is 1.43 times less risky than EA Series. It trades about 0.14 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.06 per unit of risk. If you would invest 11,564 in iShares Financials ETF on June 10, 2025 and sell it today you would earn a total of 828.00 from holding iShares Financials ETF or generate 7.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Financials ETF vs. EA Series Trust
Performance |
| Timeline |
| iShares Financials ETF |
| EA Series Trust |
IShares Financials and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Financials and EA Series
The main advantage of trading using opposite IShares Financials and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Financials position performs unexpectedly, EA Series 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 Series will offset losses from the drop in EA Series' long position.| IShares Financials vs. iShares Financial Services | IShares Financials vs. iShares Industrials ETF | IShares Financials vs. iShares Consumer Discretionary | IShares Financials vs. iShares Healthcare ETF |
| EA Series vs. EA Series Trust | EA Series vs. EA Series Trust | EA Series vs. Rumble Inc | EA Series vs. EA Series 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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