Correlation Between IShares Trust and Pro-blend(r) Extended
Can any of the company-specific risk be diversified away by investing in both IShares Trust and Pro-blend(r) Extended 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 Pro-blend(r) Extended into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Trust and Pro Blend Extended Term, you can compare the effects of market volatilities on IShares Trust and Pro-blend(r) Extended 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 Pro-blend(r) Extended. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Trust and Pro-blend(r) Extended.
Diversification Opportunities for IShares Trust and Pro-blend(r) Extended
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and Pro-blend(r) is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and Pro Blend Extended Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro-blend(r) Extended 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 Pro-blend(r) Extended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro-blend(r) Extended has no effect on the direction of IShares Trust i.e., IShares Trust and Pro-blend(r) Extended go up and down completely randomly.
Pair Corralation between IShares Trust and Pro-blend(r) Extended
Given the investment horizon of 90 days iShares Trust is expected to generate 0.33 times more return on investment than Pro-blend(r) Extended. However, iShares Trust is 3.04 times less risky than Pro-blend(r) Extended. It trades about 0.35 of its potential returns per unit of risk. Pro Blend Extended Term is currently generating about 0.1 per unit of risk. If you would invest 2,445 in iShares Trust on June 12, 2025 and sell it today you would earn a total of 78.50 from holding iShares Trust or generate 3.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
iShares Trust vs. Pro Blend Extended Term
Performance |
| Timeline |
| iShares Trust |
| Pro-blend(r) Extended |
IShares Trust and Pro-blend(r) Extended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Trust and Pro-blend(r) Extended
The main advantage of trading using opposite IShares Trust and Pro-blend(r) Extended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Trust position performs unexpectedly, Pro-blend(r) Extended 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 Pro-blend(r) Extended will offset losses from the drop in Pro-blend(r) Extended'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 |
| Pro-blend(r) Extended vs. Fidelity Advisor Energy | Pro-blend(r) Extended vs. Franklin Natural Resources | Pro-blend(r) Extended vs. Adams Natural Resources | Pro-blend(r) Extended vs. Vanguard Energy Index |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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