Correlation Between IShares International and SPDR Bloomberg
Can any of the company-specific risk be diversified away by investing in both IShares International and SPDR Bloomberg 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 International and SPDR Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares International High and SPDR Bloomberg Short, you can compare the effects of market volatilities on IShares International and SPDR Bloomberg 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 International with a short position of SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares International and SPDR Bloomberg.
Diversification Opportunities for IShares International and SPDR Bloomberg
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and SPDR is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding iShares International High and SPDR Bloomberg Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg Short and IShares International 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 International High are associated (or correlated) with SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg Short has no effect on the direction of IShares International i.e., IShares International and SPDR Bloomberg go up and down completely randomly.
Pair Corralation between IShares International and SPDR Bloomberg
Given the investment horizon of 90 days iShares International High is expected to generate 0.95 times more return on investment than SPDR Bloomberg. However, iShares International High is 1.05 times less risky than SPDR Bloomberg. It trades about 0.32 of its potential returns per unit of risk. SPDR Bloomberg Short is currently generating about 0.26 per unit of risk. If you would invest 4,655 in iShares International High on November 18, 2024 and sell it today you would earn a total of 162.00 from holding iShares International High or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares International High vs. SPDR Bloomberg Short
Performance |
| Timeline |
| iShares International |
| SPDR Bloomberg Short |
IShares International and SPDR Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares International and SPDR Bloomberg
The main advantage of trading using opposite IShares International and SPDR Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares International position performs unexpectedly, SPDR Bloomberg 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 Bloomberg will offset losses from the drop in SPDR Bloomberg's long position.| IShares International vs. iShares iBoxx High | IShares International vs. iShares Broad USD | IShares International vs. SPDR Bloomberg High | IShares International vs. iShares 0 5 Year |
| SPDR Bloomberg vs. SPDR Bloomberg International | SPDR Bloomberg vs. iShares 1 3 Year | SPDR Bloomberg vs. SPDR Bloomberg International | SPDR Bloomberg vs. SPDR FTSE International |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |