Correlation Between IShares IBonds and Frontera
Can any of the company-specific risk be diversified away by investing in both IShares IBonds and Frontera 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 Frontera 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 Frontera Group, you can compare the effects of market volatilities on IShares IBonds and Frontera 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 Frontera. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares IBonds and Frontera.
Diversification Opportunities for IShares IBonds and Frontera
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and Frontera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares iBonds Dec and Frontera Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frontera Group 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 Frontera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frontera Group has no effect on the direction of IShares IBonds i.e., IShares IBonds and Frontera go up and down completely randomly.
Pair Corralation between IShares IBonds and Frontera
If you would invest 2,223 in iShares iBonds Dec on September 2, 2024 and sell it today you would earn a total of 9.00 from holding iShares iBonds Dec or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
iShares iBonds Dec vs. Frontera Group
Performance |
| Timeline |
| iShares iBonds Dec |
| Frontera Group |
IShares IBonds and Frontera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares IBonds and Frontera
The main advantage of trading using opposite IShares IBonds and Frontera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares IBonds position performs unexpectedly, Frontera 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 Frontera will offset losses from the drop in Frontera's long position.| IShares IBonds vs. iShares iBonds Dec | IShares IBonds vs. iShares iBonds Dec | IShares IBonds vs. iShares iBonds Dec | IShares IBonds vs. iShares iBonds Dec |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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