Correlation Between IShares Trust and Axs Adaptive
Can any of the company-specific risk be diversified away by investing in both IShares Trust and Axs Adaptive 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 Trust and Axs Adaptive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Trust and Axs Adaptive Plus, you can compare the effects of market volatilities on IShares Trust and Axs Adaptive 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 Trust with a short position of Axs Adaptive. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Trust and Axs Adaptive.
Diversification Opportunities for IShares Trust and Axs Adaptive
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and Axs is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and Axs Adaptive Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axs Adaptive Plus and IShares Trust 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 Trust are associated (or correlated) with Axs Adaptive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axs Adaptive Plus has no effect on the direction of IShares Trust i.e., IShares Trust and Axs Adaptive go up and down completely randomly.
Pair Corralation between IShares Trust and Axs Adaptive
Given the investment horizon of 90 days IShares Trust is expected to generate 2.76 times less return on investment than Axs Adaptive. But when comparing it to its historical volatility, iShares Trust is 4.61 times less risky than Axs Adaptive. It trades about 0.3 of its potential returns per unit of risk. Axs Adaptive Plus is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,031 in Axs Adaptive Plus on June 1, 2025 and sell it today you would earn a total of 72.00 from holding Axs Adaptive Plus or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
iShares Trust vs. Axs Adaptive Plus
Performance |
| Timeline |
| iShares Trust |
| Axs Adaptive Plus |
IShares Trust and Axs Adaptive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Trust and Axs Adaptive
The main advantage of trading using opposite IShares Trust and Axs Adaptive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Trust position performs unexpectedly, Axs Adaptive 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 Axs Adaptive will offset losses from the drop in Axs Adaptive's long position.| IShares Trust vs. iShares Trust | IShares Trust vs. iShares Trust | IShares Trust vs. Simplify Volatility Premium | IShares Trust vs. Tidal Trust II |
| Axs Adaptive vs. Invesco Global Health | Axs Adaptive vs. Schwab Health Care | Axs Adaptive vs. The Hartford Healthcare | Axs Adaptive vs. Baron Health Care |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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