Correlation Between IShares Industrials and IShares Core
Can any of the company-specific risk be diversified away by investing in both IShares Industrials and IShares Core 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 Industrials and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Industrials ETF and iShares Core Moderate, you can compare the effects of market volatilities on IShares Industrials and IShares Core 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 Industrials with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Industrials and IShares Core.
Diversification Opportunities for IShares Industrials and IShares Core
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IShares and IShares is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding iShares Industrials ETF and iShares Core Moderate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core Moderate and IShares Industrials 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 Industrials ETF are associated (or correlated) with IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core Moderate has no effect on the direction of IShares Industrials i.e., IShares Industrials and IShares Core go up and down completely randomly.
Pair Corralation between IShares Industrials and IShares Core
Considering the 90-day investment horizon iShares Industrials ETF is expected to under-perform the IShares Core. In addition to that, IShares Industrials is 2.38 times more volatile than iShares Core Moderate. It trades about -0.04 of its total potential returns per unit of risk. iShares Core Moderate is currently generating about 0.01 per unit of volatility. If you would invest 4,807 in iShares Core Moderate on August 30, 2025 and sell it today you would earn a total of 3.50 from holding iShares Core Moderate or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Industrials ETF vs. iShares Core Moderate
Performance |
| Timeline |
| iShares Industrials ETF |
| iShares Core Moderate |
IShares Industrials and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Industrials and IShares Core
The main advantage of trading using opposite IShares Industrials and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Industrials position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core's long position.| IShares Industrials vs. First Trust Indxx | IShares Industrials vs. Direxion Daily Industrials | IShares Industrials vs. Themes Transatlantic Defense | IShares Industrials vs. FlexShares STOXX Global |
| IShares Core vs. Aptus Defined Risk | IShares Core vs. Franklin FTSE Japan | IShares Core vs. iShares Core Aggressive | IShares Core vs. iShares Core Conservative |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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