Correlation Between VivoPower International and IShares VII
Can any of the company-specific risk be diversified away by investing in both VivoPower International and IShares VII 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 VivoPower International and IShares VII into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VivoPower International PLC and iShares VII PLC, you can compare the effects of market volatilities on VivoPower International and IShares VII 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 VivoPower International with a short position of IShares VII. Check out your portfolio center. Please also check ongoing floating volatility patterns of VivoPower International and IShares VII.
Diversification Opportunities for VivoPower International and IShares VII
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between VivoPower and IShares is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding VivoPower International PLC and iShares VII PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares VII PLC and VivoPower International 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 VivoPower International PLC are associated (or correlated) with IShares VII. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares VII PLC has no effect on the direction of VivoPower International i.e., VivoPower International and IShares VII go up and down completely randomly.
Pair Corralation between VivoPower International and IShares VII
Given the investment horizon of 90 days VivoPower International PLC is expected to generate 9.44 times more return on investment than IShares VII. However, VivoPower International is 9.44 times more volatile than iShares VII PLC. It trades about 0.11 of its potential returns per unit of risk. iShares VII PLC is currently generating about 0.19 per unit of risk. If you would invest 424.00 in VivoPower International PLC on May 29, 2025 and sell it today you would earn a total of 200.00 from holding VivoPower International PLC or generate 47.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
VivoPower International PLC vs. iShares VII PLC
Performance |
| Timeline |
| VivoPower International |
| iShares VII PLC |
VivoPower International and IShares VII Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VivoPower International and IShares VII
The main advantage of trading using opposite VivoPower International and IShares VII positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VivoPower International position performs unexpectedly, IShares VII 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 VII will offset losses from the drop in IShares VII's long position.| VivoPower International vs. Ascent Solar Technologies, | VivoPower International vs. Emeren Group | VivoPower International vs. Polar Power | VivoPower International vs. Pioneer Power Solutions |
| IShares VII vs. iShares Emerging Asia | IShares VII vs. iShares MSCI Global | IShares VII vs. iShares VII PLC | IShares VII vs. iShares iBonds Dec |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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