Correlation Between IShares Trust and ZKB Platinum
Can any of the company-specific risk be diversified away by investing in both IShares Trust and ZKB Platinum 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 ZKB Platinum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Trust and ZKB Platinum ETF, you can compare the effects of market volatilities on IShares Trust and ZKB Platinum 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 ZKB Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Trust and ZKB Platinum.
Diversification Opportunities for IShares Trust and ZKB Platinum
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and ZKB is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and ZKB Platinum ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZKB Platinum ETF 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 ZKB Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZKB Platinum ETF has no effect on the direction of IShares Trust i.e., IShares Trust and ZKB Platinum go up and down completely randomly.
Pair Corralation between IShares Trust and ZKB Platinum
Given the investment horizon of 90 days IShares Trust is expected to generate 12.12 times less return on investment than ZKB Platinum. But when comparing it to its historical volatility, iShares Trust is 13.82 times less risky than ZKB Platinum. It trades about 0.31 of its potential returns per unit of risk. ZKB Platinum ETF is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 23,230 in ZKB Platinum ETF on May 1, 2025 and sell it today you would earn a total of 9,670 from holding ZKB Platinum ETF or generate 41.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Trust vs. ZKB Platinum ETF
Performance |
| Timeline |
| iShares Trust |
| ZKB Platinum ETF |
IShares Trust and ZKB Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Trust and ZKB Platinum
The main advantage of trading using opposite IShares Trust and ZKB Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Trust position performs unexpectedly, ZKB Platinum 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 ZKB Platinum will offset losses from the drop in ZKB Platinum'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 |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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