Correlation Between KBND and IShares JP
Can any of the company-specific risk be diversified away by investing in both KBND and IShares JP 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 KBND and IShares JP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KBND and iShares JP Morgan, you can compare the effects of market volatilities on KBND and IShares JP 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 KBND with a short position of IShares JP. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBND and IShares JP.
Diversification Opportunities for KBND and IShares JP
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KBND and IShares is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding KBND and iShares JP Morgan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares JP Morgan and KBND 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 KBND are associated (or correlated) with IShares JP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares JP Morgan has no effect on the direction of KBND i.e., KBND and IShares JP go up and down completely randomly.
Pair Corralation between KBND and IShares JP
If you would invest 3,069 in KBND on August 30, 2024 and sell it today you would earn a total of 0.00 from holding KBND or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
KBND vs. iShares JP Morgan
Performance |
| Timeline |
| KBND |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares JP Morgan |
KBND and IShares JP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KBND and IShares JP
The main advantage of trading using opposite KBND and IShares JP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBND position performs unexpectedly, IShares JP 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 JP will offset losses from the drop in IShares JP's long position.| KBND vs. VanEck China Bond | KBND vs. KraneShares Asia Pacific | KBND vs. KraneShares MSCI All | KBND vs. First Trust Long |
| IShares JP vs. Schwab Fundamental International | IShares JP vs. Xtrackers International Real | IShares JP vs. Schwab Fundamental Small | IShares JP vs. Schwab Fundamental Emerging |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |