Correlation Between BSCI and IShares IBoxx
Can any of the company-specific risk be diversified away by investing in both BSCI and IShares IBoxx 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 BSCI and IShares IBoxx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BSCI and iShares iBoxx Investment, you can compare the effects of market volatilities on BSCI and IShares IBoxx 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 BSCI with a short position of IShares IBoxx. Check out your portfolio center. Please also check ongoing floating volatility patterns of BSCI and IShares IBoxx.
Diversification Opportunities for BSCI and IShares IBoxx
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BSCI and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BSCI and iShares iBoxx Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares iBoxx Investment and BSCI 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 BSCI are associated (or correlated) with IShares IBoxx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares iBoxx Investment has no effect on the direction of BSCI i.e., BSCI and IShares IBoxx go up and down completely randomly.
Pair Corralation between BSCI and IShares IBoxx
If you would invest 10,355 in iShares iBoxx Investment on January 25, 2024 and sell it today you would earn a total of 149.00 from holding iShares iBoxx Investment or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BSCI vs. iShares iBoxx Investment
Performance |
| Timeline |
| BSCI |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares iBoxx Investment |
BSCI and IShares IBoxx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BSCI and IShares IBoxx
The main advantage of trading using opposite BSCI and IShares IBoxx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BSCI position performs unexpectedly, IShares IBoxx 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 IBoxx will offset losses from the drop in IShares IBoxx's long position.| BSCI vs. Vanguard Total Stock | BSCI vs. SPDR SP 500 | BSCI vs. iShares Core SP | BSCI vs. Vanguard Total Bond |
| 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 |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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