Correlation Between IShares IBonds and IShares

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Can any of the company-specific risk be diversified away by investing in both IShares IBonds and IShares 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 IBonds and IShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares iBonds 2026 and IShares, you can compare the effects of market volatilities on IShares IBonds and IShares 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 IBonds with a short position of IShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares IBonds and IShares.

Diversification Opportunities for IShares IBonds and IShares

0.91
  Correlation Coefficient

Almost no diversification

The 3 months correlation between IShares and IShares is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding iShares iBonds 2026 and IShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares and IShares IBonds 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 iBonds 2026 are associated (or correlated) with IShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares has no effect on the direction of IShares IBonds i.e., IShares IBonds and IShares go up and down completely randomly.

Pair Corralation between IShares IBonds and IShares

If you would invest  2,279  in iShares iBonds 2026 on September 12, 2024 and sell it today you would earn a total of  48.00  from holding iShares iBonds 2026 or generate 2.11% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy1.59%
ValuesDaily Returns

iShares iBonds 2026  vs.  IShares

 Performance 
       Timeline  
iShares iBonds 2026 

Risk-Adjusted Performance

20 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in iShares iBonds 2026 are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical indicators, IShares IBonds is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.
IShares 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days IShares has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, IShares is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

IShares IBonds and IShares Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with IShares IBonds and IShares

The main advantage of trading using opposite IShares IBonds and IShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares IBonds position performs unexpectedly, IShares 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 IShares will offset losses from the drop in IShares' long position.
The idea behind iShares iBonds 2026 and IShares 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.
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.

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