Correlation Between T Rex and IShares IBonds
Can any of the company-specific risk be diversified away by investing in both T Rex and IShares IBonds 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 T Rex and IShares IBonds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Rex 2X Long and iShares iBonds Dec, you can compare the effects of market volatilities on T Rex and IShares IBonds 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 T Rex with a short position of IShares IBonds. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Rex and IShares IBonds.
Diversification Opportunities for T Rex and IShares IBonds
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NVDX and IShares is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding T Rex 2X Long and iShares iBonds Dec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares iBonds Dec and T Rex 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 T Rex 2X Long are associated (or correlated) with IShares IBonds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares iBonds Dec has no effect on the direction of T Rex i.e., T Rex and IShares IBonds go up and down completely randomly.
Pair Corralation between T Rex and IShares IBonds
Given the investment horizon of 90 days T Rex 2X Long is expected to generate 44.06 times more return on investment than IShares IBonds. However, T Rex is 44.06 times more volatile than iShares iBonds Dec. It trades about 0.12 of its potential returns per unit of risk. iShares iBonds Dec is currently generating about 0.0 per unit of risk. If you would invest 1,440 in T Rex 2X Long on September 3, 2024 and sell it today you would earn a total of 302.00 from holding T Rex 2X Long or generate 20.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
T Rex 2X Long vs. iShares iBonds Dec
Performance |
| Timeline |
| T Rex 2X |
| iShares iBonds Dec |
T Rex and IShares IBonds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Rex and IShares IBonds
The main advantage of trading using opposite T Rex and IShares IBonds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Rex position performs unexpectedly, IShares IBonds 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 IBonds will offset losses from the drop in IShares IBonds' long position.| T Rex vs. Tidal Trust II | T Rex vs. Tidal Trust II | T Rex vs. Direxion Daily META | T Rex vs. Direxion Daily META |
| IShares IBonds vs. Invesco BulletShares 2024 | IShares IBonds vs. Invesco BulletShares 2026 | IShares IBonds vs. Invesco BulletShares 2027 | IShares IBonds vs. Invesco BulletShares 2028 |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |