Correlation Between IShares SP and Cardano Impact

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Can any of the company-specific risk be diversified away by investing in both IShares SP and Cardano Impact 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 SP and Cardano Impact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares SP 500 and Cardano Impact Equity, you can compare the effects of market volatilities on IShares SP and Cardano Impact 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 SP with a short position of Cardano Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares SP and Cardano Impact.

Diversification Opportunities for IShares SP and Cardano Impact

0.86
  Correlation Coefficient

Very poor diversification

The 3 months correlation between IShares and Cardano is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding iShares SP 500 and Cardano Impact Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardano Impact Equity and IShares SP 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 SP 500 are associated (or correlated) with Cardano Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardano Impact Equity has no effect on the direction of IShares SP i.e., IShares SP and Cardano Impact go up and down completely randomly.

Pair Corralation between IShares SP and Cardano Impact

Assuming the 90 days trading horizon iShares SP 500 is expected to generate 0.74 times more return on investment than Cardano Impact. However, iShares SP 500 is 1.35 times less risky than Cardano Impact. It trades about 0.3 of its potential returns per unit of risk. Cardano Impact Equity is currently generating about 0.17 per unit of risk. If you would invest  611.00  in iShares SP 500 on April 24, 2025 and sell it today you would earn a total of  98.00  from holding iShares SP 500 or generate 16.04% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

iShares SP 500  vs.  Cardano Impact Equity

 Performance 
       Timeline  
iShares SP 500 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in iShares SP 500 are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, IShares SP unveiled solid returns over the last few months and may actually be approaching a breakup point.
Cardano Impact Equity 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Cardano Impact Equity are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of comparatively uncertain basic indicators, Cardano Impact may actually be approaching a critical reversion point that can send shares even higher in August 2025.

IShares SP and Cardano Impact Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with IShares SP and Cardano Impact

The main advantage of trading using opposite IShares SP and Cardano Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SP position performs unexpectedly, Cardano Impact 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 Cardano Impact will offset losses from the drop in Cardano Impact's long position.
The idea behind iShares SP 500 and Cardano Impact Equity 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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