Correlation Between ARK 21Shares and IShares Core

Can any of the company-specific risk be diversified away by investing in both ARK 21Shares 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 ARK 21Shares and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ARK 21Shares Active and iShares Core Growth, you can compare the effects of market volatilities on ARK 21Shares 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 ARK 21Shares with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARK 21Shares and IShares Core.

Diversification Opportunities for ARK 21Shares and IShares Core

-0.75

Correlation Coefficient

ARK 21Shares  IShares Core

Pay attention - limited upside

The 3 months correlation between ARK and IShares is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding ARK 21Shares Active and iShares Core Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core Growth and ARK 21Shares 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 ARK 21Shares Active 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 Growth has no effect on the direction of ARK 21Shares i.e., ARK 21Shares and IShares Core go up and down completely randomly.

Pair Corralation between ARK 21Shares and IShares Core

If you would invest  5,753  in iShares Core Growth on May 6, 2025 and sell it today you would earn a total of  421.00  from holding iShares Core Growth or generate 7.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.61%
Values	Daily Returns

ARK 21Shares Active  vs.  iShares Core Growth

ARK 21Shares Active

Risk-Adjusted Performance

Very Weak

Over the last 90 days ARK 21Shares Active has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward-looking signals, ARK 21Shares is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

iShares Core Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Core Growth are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, IShares Core may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with ARK 21Shares and IShares Core

The main advantage of trading using opposite ARK 21Shares and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARK 21Shares 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.

The idea behind ARK 21Shares Active and iShares Core Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.