Correlation Between SPDR Barclays and IShares
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and IShares 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 SPDR Barclays and IShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Barclays Intermediate and IShares, you can compare the effects of market volatilities on SPDR Barclays and IShares 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 SPDR Barclays with a short position of IShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and IShares.
Diversification Opportunities for SPDR Barclays and IShares
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPDR and IShares is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Intermediate and IShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares and SPDR Barclays 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 SPDR Barclays Intermediate are associated (or correlated) with IShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and IShares go up and down completely randomly.
Pair Corralation between SPDR Barclays and IShares
If you would invest (100.00) in IShares on January 24, 2024 and sell it today you would earn a total of 100.00 from holding IShares or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 0.0% |
Values | Daily Returns |
SPDR Barclays Intermediate vs. IShares
Performance |
Timeline |
SPDR Barclays Interm |
IShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR Barclays and IShares Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SPDR Barclays and IShares
The main advantage of trading using opposite SPDR Barclays and IShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, IShares 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 will offset losses from the drop in IShares' long position.SPDR Barclays vs. iShares iBonds 2026 | SPDR Barclays vs. iShares iBonds Dec | SPDR Barclays vs. iShares 25 Year |
IShares vs. Vanguard Total Stock | IShares vs. SPDR SP 500 | IShares vs. iShares Core SP | IShares vs. Vanguard Total Bond |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |