Correlation Between Sygnum Platform and IShares Core
Can any of the company-specific risk be diversified away by investing in both Sygnum Platform 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 Sygnum Platform and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sygnum Platform Winners and iShares Core SP, you can compare the effects of market volatilities on Sygnum Platform 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 Sygnum Platform with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sygnum Platform and IShares Core.
Diversification Opportunities for Sygnum Platform and IShares Core
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sygnum and IShares is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sygnum Platform Winners and iShares Core SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core SP and Sygnum Platform 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 Sygnum Platform Winners 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 SP has no effect on the direction of Sygnum Platform i.e., Sygnum Platform and IShares Core go up and down completely randomly.
Pair Corralation between Sygnum Platform and IShares Core
Assuming the 90 days trading horizon Sygnum Platform Winners is expected to generate 4.22 times more return on investment than IShares Core. However, Sygnum Platform is 4.22 times more volatile than iShares Core SP. It trades about 0.19 of its potential returns per unit of risk. iShares Core SP is currently generating about 0.37 per unit of risk. If you would invest 1,558 in Sygnum Platform Winners on April 21, 2025 and sell it today you would earn a total of 665.00 from holding Sygnum Platform Winners or generate 42.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sygnum Platform Winners vs. iShares Core SP
Performance |
| Timeline |
| Sygnum Platform Winners |
| iShares Core SP |
Sygnum Platform and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sygnum Platform and IShares Core
The main advantage of trading using opposite Sygnum Platform and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sygnum Platform 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.| Sygnum Platform vs. Sygnum Platform Winners | Sygnum Platform vs. Vanguard FTSE Emerging | Sygnum Platform vs. UBS ETF MSCI | Sygnum Platform vs. Amundi MSCI Semiconductors |
| IShares Core vs. iShares Corp Bond | IShares Core vs. iShares Emerging Asia | IShares Core vs. iShares MSCI Global | IShares Core vs. iShares VII PLC |
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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