Correlation Between IShares Trust and Electromagnetic Geoservices
Can any of the company-specific risk be diversified away by investing in both IShares Trust and Electromagnetic Geoservices 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 Electromagnetic Geoservices into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Trust and Electromagnetic Geoservices ASA, you can compare the effects of market volatilities on IShares Trust and Electromagnetic Geoservices 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 Electromagnetic Geoservices. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Trust and Electromagnetic Geoservices.
Diversification Opportunities for IShares Trust and Electromagnetic Geoservices
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and Electromagnetic is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and Electromagnetic Geoservices AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electromagnetic Geoservices 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 Electromagnetic Geoservices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electromagnetic Geoservices has no effect on the direction of IShares Trust i.e., IShares Trust and Electromagnetic Geoservices go up and down completely randomly.
Pair Corralation between IShares Trust and Electromagnetic Geoservices
Given the investment horizon of 90 days iShares Trust is expected to generate 0.03 times more return on investment than Electromagnetic Geoservices. However, iShares Trust is 33.43 times less risky than Electromagnetic Geoservices. It trades about 0.34 of its potential returns per unit of risk. Electromagnetic Geoservices ASA is currently generating about -0.03 per unit of risk. If you would invest 2,465 in iShares Trust on May 30, 2025 and sell it today you would earn a total of 69.00 from holding iShares Trust or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
iShares Trust vs. Electromagnetic Geoservices AS
Performance |
| Timeline |
| iShares Trust |
| Electromagnetic Geoservices |
IShares Trust and Electromagnetic Geoservices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Trust and Electromagnetic Geoservices
The main advantage of trading using opposite IShares Trust and Electromagnetic Geoservices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Trust position performs unexpectedly, Electromagnetic Geoservices 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 Electromagnetic Geoservices will offset losses from the drop in Electromagnetic Geoservices' long position.| IShares Trust vs. iShares Trust | IShares Trust vs. iShares Trust | IShares Trust vs. Simplify Volatility Premium | IShares Trust vs. Tidal Trust II |
| Electromagnetic Geoservices vs. Aker Solutions ASA | Electromagnetic Geoservices vs. Atlantis Subsea Indonesia | Electromagnetic Geoservices vs. Dno ASA | Electromagnetic Geoservices vs. SD Standard Drilling |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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