Correlation Between IShares Semiconductor and Robo Global

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

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

Diversification Opportunities for IShares Semiconductor and Robo Global

0.92

Correlation Coefficient

IShares Semiconductor  Robo Global

Almost no diversification

The 3 months correlation between IShares and Robo is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding iShares Semiconductor ETF and Robo Global Artificial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robo Global Artificial and IShares Semiconductor 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 Semiconductor ETF are associated (or correlated) with Robo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robo Global Artificial has no effect on the direction of IShares Semiconductor i.e., IShares Semiconductor and Robo Global go up and down completely randomly.

Pair Corralation between IShares Semiconductor and Robo Global

Given the investment horizon of 90 days iShares Semiconductor ETF is expected to generate 1.22 times more return on investment than Robo Global. However, IShares Semiconductor is 1.22 times more volatile than Robo Global Artificial. It trades about 0.24 of its potential returns per unit of risk. Robo Global Artificial is currently generating about 0.23 per unit of risk. If you would invest  23,823  in iShares Semiconductor ETF on August 5, 2025 and sell it today you would earn a total of  7,015  from holding iShares Semiconductor ETF or generate 29.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

iShares Semiconductor ETF  vs.  Robo Global Artificial

iShares Semiconductor ETF

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Semiconductor ETF are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, IShares Semiconductor showed solid returns over the last few months and may actually be approaching a breakup point.

Robo Global Artificial

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Robo Global Artificial are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Robo Global reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IShares Semiconductor and Robo Global

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

The idea behind iShares Semiconductor ETF and Robo Global Artificial 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.