Correlation Between IShares SPTSX and IShares Core
Can any of the company-specific risk be diversified away by investing in both IShares SPTSX 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 IShares SPTSX and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares SPTSX Global and iShares Core Canadian, you can compare the effects of market volatilities on IShares SPTSX 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 IShares SPTSX with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares SPTSX and IShares Core.
Diversification Opportunities for IShares SPTSX and IShares Core
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and IShares is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding iShares SPTSX Global and iShares Core Canadian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core Canadian and IShares SPTSX 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 SPTSX Global 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 Canadian has no effect on the direction of IShares SPTSX i.e., IShares SPTSX and IShares Core go up and down completely randomly.
Pair Corralation between IShares SPTSX and IShares Core
Assuming the 90 days trading horizon iShares SPTSX Global is expected to generate 2.77 times more return on investment than IShares Core. However, IShares SPTSX is 2.77 times more volatile than iShares Core Canadian. It trades about 0.16 of its potential returns per unit of risk. iShares Core Canadian is currently generating about -0.03 per unit of risk. If you would invest 2,205 in iShares SPTSX Global on September 11, 2025 and sell it today you would earn a total of 2,715 from holding iShares SPTSX Global or generate 123.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares SPTSX Global vs. iShares Core Canadian
Performance |
| Timeline |
| iShares SPTSX Global |
| iShares Core Canadian |
IShares SPTSX and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares SPTSX and IShares Core
The main advantage of trading using opposite IShares SPTSX and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SPTSX 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.| IShares SPTSX vs. iShares Core MSCI | IShares SPTSX vs. iShares Core MSCI | IShares SPTSX vs. Vanguard FTSE Emerging | IShares SPTSX vs. Vanguard FTSE Global |
| IShares Core vs. iShares Convertible Bond | IShares Core vs. iShares SP Mid Cap | IShares Core vs. iShares Edge MSCI | IShares Core vs. iShares Flexible Monthly |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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