Correlation Between IShares Exponential and Democracy International
Can any of the company-specific risk be diversified away by investing in both IShares Exponential and Democracy International 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 Exponential and Democracy International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Exponential Technologies and Democracy International, you can compare the effects of market volatilities on IShares Exponential and Democracy International 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 Exponential with a short position of Democracy International. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Exponential and Democracy International.
Diversification Opportunities for IShares Exponential and Democracy International
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Democracy is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding iShares Exponential Technologi and Democracy International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Democracy International and IShares Exponential 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 Exponential Technologies are associated (or correlated) with Democracy International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Democracy International has no effect on the direction of IShares Exponential i.e., IShares Exponential and Democracy International go up and down completely randomly.
Pair Corralation between IShares Exponential and Democracy International
Allowing for the 90-day total investment horizon iShares Exponential Technologies is expected to generate 1.32 times more return on investment than Democracy International. However, IShares Exponential is 1.32 times more volatile than Democracy International. It trades about 0.15 of its potential returns per unit of risk. Democracy International is currently generating about 0.15 per unit of risk. If you would invest 6,665 in iShares Exponential Technologies on July 20, 2025 and sell it today you would earn a total of 632.00 from holding iShares Exponential Technologies or generate 9.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Exponential Technologi vs. Democracy International
Performance |
| Timeline |
| iShares Exponential |
| Democracy International |
IShares Exponential and Democracy International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Exponential and Democracy International
The main advantage of trading using opposite IShares Exponential and Democracy International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Exponential position performs unexpectedly, Democracy International 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 Democracy International will offset losses from the drop in Democracy International's long position.| IShares Exponential vs. Global X FinTech | IShares Exponential vs. iShares Genomics Immunology | IShares Exponential vs. SPDR Kensho New | IShares Exponential vs. Invesco SP SmallCap |
| Democracy International vs. Morgan Stanley ETF | Democracy International vs. Morgan Stanley ETF | Democracy International vs. Morgan Stanley Etf | Democracy International vs. Morgan Stanley Etf |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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