Correlation Between IShares Core and Teucrium Corn

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

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

Diversification Opportunities for IShares Core and Teucrium Corn

-0.69

Correlation Coefficient

IShares Core  Teucrium Corn

Excellent diversification

The 3 months correlation between IShares and Teucrium is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and Teucrium Corn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teucrium Corn and IShares Core 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 Core SP are associated (or correlated) with Teucrium Corn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teucrium Corn has no effect on the direction of IShares Core i.e., IShares Core and Teucrium Corn go up and down completely randomly.

Pair Corralation between IShares Core and Teucrium Corn

Considering the 90-day investment horizon iShares Core SP is expected to generate 0.78 times more return on investment than Teucrium Corn. However, iShares Core SP is 1.28 times less risky than Teucrium Corn. It trades about 0.26 of its potential returns per unit of risk. Teucrium Corn is currently generating about -0.11 per unit of risk. If you would invest  55,979  in iShares Core SP on May 6, 2025 and sell it today you would earn a total of  7,248  from holding iShares Core SP or generate 12.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

iShares Core SP  vs.  Teucrium Corn

iShares Core SP

Risk-Adjusted Performance

Solid

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

Teucrium Corn

Risk-Adjusted Performance

Very Weak

Over the last 90 days Teucrium Corn has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Etf's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

Pair Trading with IShares Core and Teucrium Corn

The main advantage of trading using opposite IShares Core and Teucrium Corn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, Teucrium Corn 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 Teucrium Corn will offset losses from the drop in Teucrium Corn's long position.

The idea behind iShares Core SP and Teucrium Corn 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.

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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.