Correlation Between IShares IBoxx and SPDR Bloomberg
Can any of the company-specific risk be diversified away by investing in both IShares IBoxx and SPDR Bloomberg 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 IBoxx and SPDR Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares iBoxx Investment and SPDR Bloomberg Short, you can compare the effects of market volatilities on IShares IBoxx and SPDR Bloomberg 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 IBoxx with a short position of SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares IBoxx and SPDR Bloomberg.
Diversification Opportunities for IShares IBoxx and SPDR Bloomberg
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and SPDR is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding iShares iBoxx Investment and SPDR Bloomberg Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg Short and IShares IBoxx 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 iBoxx Investment are associated (or correlated) with SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg Short has no effect on the direction of IShares IBoxx i.e., IShares IBoxx and SPDR Bloomberg go up and down completely randomly.
Pair Corralation between IShares IBoxx and SPDR Bloomberg
Considering the 90-day investment horizon IShares IBoxx is expected to generate 1.87 times less return on investment than SPDR Bloomberg. In addition to that, IShares IBoxx is 1.75 times more volatile than SPDR Bloomberg Short. It trades about 0.03 of its total potential returns per unit of risk. SPDR Bloomberg Short is currently generating about 0.11 per unit of volatility. If you would invest 2,146 in SPDR Bloomberg Short on September 4, 2024 and sell it today you would earn a total of 405.00 from holding SPDR Bloomberg Short or generate 18.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares iBoxx Investment vs. SPDR Bloomberg Short
Performance |
| Timeline |
| iShares iBoxx Investment |
| SPDR Bloomberg Short |
IShares IBoxx and SPDR Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares IBoxx and SPDR Bloomberg
The main advantage of trading using opposite IShares IBoxx and SPDR Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares IBoxx position performs unexpectedly, SPDR Bloomberg 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 SPDR Bloomberg will offset losses from the drop in SPDR Bloomberg's long position.| IShares IBoxx vs. iShares iBoxx High | IShares IBoxx vs. iShares 1 3 Year | IShares IBoxx vs. iShares TIPS Bond | IShares IBoxx vs. iShares 7 10 Year |
| SPDR Bloomberg vs. PIMCO 0 5 Year | SPDR Bloomberg vs. iShares 0 5 Year | SPDR Bloomberg vs. Invesco Senior Loan | SPDR Bloomberg vs. SPDR Blackstone Senior |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |