Correlation Between US Treasury and IShares IBonds
Can any of the company-specific risk be diversified away by investing in both US Treasury 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 US Treasury and IShares IBonds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Treasury 12 and iShares iBonds Dec, you can compare the effects of market volatilities on US Treasury 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 US Treasury with a short position of IShares IBonds. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Treasury and IShares IBonds.
Diversification Opportunities for US Treasury and IShares IBonds
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OBIL and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding US Treasury 12 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 US Treasury 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 US Treasury 12 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 US Treasury i.e., US Treasury and IShares IBonds go up and down completely randomly.
Pair Corralation between US Treasury and IShares IBonds
If you would invest 0.00 in iShares iBonds Dec on September 4, 2024 and sell it today you would earn a total of 0.00 from holding iShares iBonds Dec or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
US Treasury 12 vs. iShares iBonds Dec
Performance |
| Timeline |
| US Treasury 12 |
| iShares iBonds Dec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
US Treasury and IShares IBonds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Treasury and IShares IBonds
The main advantage of trading using opposite US Treasury and IShares IBonds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Treasury 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.| US Treasury vs. Rbb Fund | US Treasury vs. Rbb Fund | US Treasury vs. Rbb Fund | US Treasury vs. US Treasury 6 |
| IShares IBonds vs. Global X Funds | IShares IBonds vs. US Treasury 12 | IShares IBonds vs. Tidal Trust II | IShares IBonds vs. Franklin Liberty Treasury |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |