Correlation Between IShares IBonds and MYMH
Can any of the company-specific risk be diversified away by investing in both IShares IBonds and MYMH 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 MYMH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares iBonds Dec and MYMH, you can compare the effects of market volatilities on IShares IBonds and MYMH 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 MYMH. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares IBonds and MYMH.
Diversification Opportunities for IShares IBonds and MYMH
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and MYMH is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding iShares iBonds Dec and MYMH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYMH 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 Dec are associated (or correlated) with MYMH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYMH has no effect on the direction of IShares IBonds i.e., IShares IBonds and MYMH go up and down completely randomly.
Pair Corralation between IShares IBonds and MYMH
Given the investment horizon of 90 days iShares iBonds Dec is expected to generate 0.31 times more return on investment than MYMH. However, iShares iBonds Dec is 3.18 times less risky than MYMH. It trades about 0.12 of its potential returns per unit of risk. MYMH is currently generating about -0.01 per unit of risk. If you would invest 2,490 in iShares iBonds Dec on September 3, 2024 and sell it today you would earn a total of 122.00 from holding iShares iBonds Dec or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 9.9% |
| Values | Daily Returns |
iShares iBonds Dec vs. MYMH
Performance |
| Timeline |
| iShares iBonds Dec |
| MYMH |
IShares IBonds and MYMH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares IBonds and MYMH
The main advantage of trading using opposite IShares IBonds and MYMH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares IBonds position performs unexpectedly, MYMH 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 MYMH will offset losses from the drop in MYMH's long position.| IShares IBonds vs. iShares iBonds Dec | IShares IBonds vs. iShares iBonds Dec | IShares IBonds vs. iShares Trust | IShares IBonds vs. iShares iBonds Dec |
| MYMH vs. Invesco BulletShares 2024 | MYMH vs. Invesco BulletShares 2026 | MYMH vs. Invesco BulletShares 2027 |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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