Correlation Between IShares JP and KBND
Can any of the company-specific risk be diversified away by investing in both IShares JP and KBND 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 JP and KBND into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares JP Morgan and KBND, you can compare the effects of market volatilities on IShares JP and KBND 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 JP with a short position of KBND. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares JP and KBND.
Diversification Opportunities for IShares JP and KBND
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and KBND is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares JP Morgan and KBND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBND and IShares JP 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 JP Morgan are associated (or correlated) with KBND. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBND has no effect on the direction of IShares JP i.e., IShares JP and KBND go up and down completely randomly.
Pair Corralation between IShares JP and KBND
If you would invest 3,685 in iShares JP Morgan on November 28, 2024 and sell it today you would earn a total of 58.00 from holding iShares JP Morgan or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
iShares JP Morgan vs. KBND
Performance |
| Timeline |
| iShares JP Morgan |
| KBND |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
IShares JP and KBND Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares JP and KBND
The main advantage of trading using opposite IShares JP and KBND positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares JP position performs unexpectedly, KBND 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 KBND will offset losses from the drop in KBND's long position.| IShares JP vs. SPDR Bloomberg Emerging | IShares JP vs. iShares International Treasury | IShares JP vs. iShares JP Morgan | IShares JP vs. iShares Agency Bond |
| KBND vs. VanEck China Bond | KBND vs. KraneShares Asia Pacific | KBND vs. KraneShares MSCI All | KBND vs. First Trust Long |
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.
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