Correlation Between IShares Trust and Immutable

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

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

Diversification Opportunities for IShares Trust and Immutable

-0.05

Correlation Coefficient

IShares Trust  Immutable

Good diversification

The 3 months correlation between IShares and Immutable is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and Immutable X in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immutable X and IShares Trust 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 Trust are associated (or correlated) with Immutable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immutable X has no effect on the direction of IShares Trust i.e., IShares Trust and Immutable go up and down completely randomly.

Pair Corralation between IShares Trust and Immutable

Given the investment horizon of 90 days iShares Trust is expected to generate 0.02 times more return on investment than Immutable. However, iShares Trust is 46.7 times less risky than Immutable. It trades about 0.42 of its potential returns per unit of risk. Immutable X is currently generating about -0.02 per unit of risk. If you would invest  2,445  in iShares Trust on May 22, 2025 and sell it today you would earn a total of  76.00  from holding iShares Trust or generate 3.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.31%
Values	Daily Returns

iShares Trust   vs.  Immutable X

iShares Trust

Risk-Adjusted Performance

High

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Trust are ranked lower than 32 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable fundamental indicators, IShares Trust is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Immutable X

Risk-Adjusted Performance

Weakest

Over the last 90 days Immutable X has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Crypto's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for Immutable X shareholders.

Pair Trading with IShares Trust and Immutable

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

The idea behind iShares Trust and Immutable X 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.