Correlation Between IShares Semiconductor and IShares Russell
Can any of the company-specific risk be diversified away by investing in both IShares Semiconductor and IShares Russell 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 Semiconductor and IShares Russell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Semiconductor ETF and iShares Russell Mid Cap, you can compare the effects of market volatilities on IShares Semiconductor and IShares Russell 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 Semiconductor with a short position of IShares Russell. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Semiconductor and IShares Russell.
Diversification Opportunities for IShares Semiconductor and IShares Russell
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IShares and IShares is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding iShares Semiconductor ETF and iShares Russell Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Russell Mid and IShares Semiconductor 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 Semiconductor ETF are associated (or correlated) with IShares Russell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Russell Mid has no effect on the direction of IShares Semiconductor i.e., IShares Semiconductor and IShares Russell go up and down completely randomly.
Pair Corralation between IShares Semiconductor and IShares Russell
Given the investment horizon of 90 days iShares Semiconductor ETF is expected to generate 2.57 times more return on investment than IShares Russell. However, IShares Semiconductor is 2.57 times more volatile than iShares Russell Mid Cap. It trades about 0.17 of its potential returns per unit of risk. iShares Russell Mid Cap is currently generating about 0.05 per unit of risk. If you would invest 24,833 in iShares Semiconductor ETF on September 7, 2025 and sell it today you would earn a total of 6,107 from holding iShares Semiconductor ETF or generate 24.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Semiconductor ETF vs. iShares Russell Mid Cap
Performance |
| Timeline |
| iShares Semiconductor ETF |
| iShares Russell Mid |
IShares Semiconductor and IShares Russell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Semiconductor and IShares Russell
The main advantage of trading using opposite IShares Semiconductor and IShares Russell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Semiconductor position performs unexpectedly, IShares Russell 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 Russell will offset losses from the drop in IShares Russell's long position.| IShares Semiconductor vs. First Trust Technology | IShares Semiconductor vs. Fidelity MSCI Information | IShares Semiconductor vs. First Trust Nasdaq | IShares Semiconductor vs. iShares Expanded Tech Software |
| IShares Russell vs. FT Vest Equity | IShares Russell vs. Northern Lights | IShares Russell vs. Diamond Hill Funds | IShares Russell vs. Dimensional International High |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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