Correlation Between WGRO and IShares IBonds
Can any of the company-specific risk be diversified away by investing in both WGRO 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 WGRO and IShares IBonds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WGRO and iShares iBonds Dec, you can compare the effects of market volatilities on WGRO 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 WGRO with a short position of IShares IBonds. Check out your portfolio center. Please also check ongoing floating volatility patterns of WGRO and IShares IBonds.
Diversification Opportunities for WGRO and IShares IBonds
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WGRO and IShares is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding WGRO 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 WGRO 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 WGRO 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 WGRO i.e., WGRO and IShares IBonds go up and down completely randomly.
Pair Corralation between WGRO and IShares IBonds
If you would invest 1,933 in iShares iBonds Dec on September 2, 2024 and sell it today you would earn a total of 22.00 from holding iShares iBonds Dec or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
WGRO vs. iShares iBonds Dec
Performance |
| Timeline |
| WGRO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares iBonds Dec |
WGRO and IShares IBonds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WGRO and IShares IBonds
The main advantage of trading using opposite WGRO and IShares IBonds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WGRO 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.| WGRO vs. iShares Small Cap | WGRO vs. Virtus ETF Trust | WGRO vs. Amplify Thematic All Stars | WGRO vs. ProShares Nasdaq 100 Dorsey |
| IShares IBonds vs. iShares iBonds Dec | IShares IBonds vs. iShares iBonds Dec | IShares IBonds vs. iShares iBonds Dec | IShares IBonds vs. iShares iBonds Dec |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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