Correlation Between IShares IBonds and WGRO
Can any of the company-specific risk be diversified away by investing in both IShares IBonds and WGRO 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 WGRO 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 WGRO, you can compare the effects of market volatilities on IShares IBonds and WGRO 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 WGRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares IBonds and WGRO.
Diversification Opportunities for IShares IBonds and WGRO
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and WGRO is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding iShares iBonds Dec and WGRO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WGRO 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 WGRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WGRO has no effect on the direction of IShares IBonds i.e., IShares IBonds and WGRO go up and down completely randomly.
Pair Corralation between IShares IBonds and WGRO
If you would invest 1,933 in iShares iBonds Dec on September 2, 2024 and sell it today you would earn a total of 22.00 from holding iShares iBonds Dec or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
iShares iBonds Dec vs. WGRO
Performance |
| Timeline |
| iShares iBonds Dec |
| WGRO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares IBonds and WGRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares IBonds and WGRO
The main advantage of trading using opposite IShares IBonds and WGRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares IBonds position performs unexpectedly, WGRO 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 WGRO will offset losses from the drop in WGRO'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 |
| WGRO vs. iShares Small Cap | WGRO vs. Virtus ETF Trust | WGRO vs. Amplify Thematic All Stars | WGRO vs. ProShares Nasdaq 100 Dorsey |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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