Correlation Between IShares Floating and SPDR Blackstone
Can any of the company-specific risk be diversified away by investing in both IShares Floating and SPDR Blackstone 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 Floating and SPDR Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Floating Rate and SPDR Blackstone Senior, you can compare the effects of market volatilities on IShares Floating and SPDR Blackstone 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 Floating with a short position of SPDR Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Floating and SPDR Blackstone.
Diversification Opportunities for IShares Floating and SPDR Blackstone
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and SPDR is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding iShares Floating Rate and SPDR Blackstone Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Blackstone Senior and IShares Floating 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 Floating Rate are associated (or correlated) with SPDR Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Blackstone Senior has no effect on the direction of IShares Floating i.e., IShares Floating and SPDR Blackstone go up and down completely randomly.
Pair Corralation between IShares Floating and SPDR Blackstone
Given the investment horizon of 90 days IShares Floating is expected to generate 1.81 times less return on investment than SPDR Blackstone. But when comparing it to its historical volatility, iShares Floating Rate is 2.93 times less risky than SPDR Blackstone. It trades about 0.55 of its potential returns per unit of risk. SPDR Blackstone Senior is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 4,159 in SPDR Blackstone Senior on August 24, 2024 and sell it today you would earn a total of 40.00 from holding SPDR Blackstone Senior or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Floating Rate vs. SPDR Blackstone Senior
Performance |
| Timeline |
| iShares Floating Rate |
| SPDR Blackstone Senior |
IShares Floating and SPDR Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Floating and SPDR Blackstone
The main advantage of trading using opposite IShares Floating and SPDR Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Floating position performs unexpectedly, SPDR Blackstone 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 SPDR Blackstone will offset losses from the drop in SPDR Blackstone's long position.| IShares Floating vs. SPDR Bloomberg 1 3 | IShares Floating vs. iShares Ultra Short Term | IShares Floating vs. First Trust Enhanced | IShares Floating vs. iShares 0 3 Month |
| SPDR Blackstone vs. First Trust Senior | SPDR Blackstone vs. SPDR Bloomberg Short | SPDR Blackstone vs. SPDR Bloomberg Investment | SPDR Blackstone vs. iShares Floating Rate |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Positions Ratings 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 | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |