Correlation Between SPDR Barclays and IShares 5
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and IShares 5 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 5 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 5 10 Year, you can compare the effects of market volatilities on SPDR Barclays and IShares 5 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 5. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and IShares 5.
Diversification Opportunities for SPDR Barclays and IShares 5
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and IShares is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Intermediate and iShares 5 10 Year in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares 5 10 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 5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares 5 10 has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and IShares 5 go up and down completely randomly.
Pair Corralation between SPDR Barclays and IShares 5
Given the investment horizon of 90 days SPDR Barclays Intermediate is expected to generate 0.67 times more return on investment than IShares 5. However, SPDR Barclays Intermediate is 1.49 times less risky than IShares 5. It trades about -0.18 of its potential returns per unit of risk. iShares 5 10 Year is currently generating about -0.22 per unit of risk. If you would invest 3,250 in SPDR Barclays Intermediate on January 26, 2024 and sell it today you would lose (35.00) from holding SPDR Barclays Intermediate or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
SPDR Barclays Intermediate vs. iShares 5 10 Year
Performance |
| Timeline |
| SPDR Barclays Interm |
| iShares 5 10 |
SPDR Barclays and IShares 5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and IShares 5
The main advantage of trading using opposite SPDR Barclays and IShares 5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, IShares 5 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 5 will offset losses from the drop in IShares 5's long position.| SPDR Barclays vs. iShares iBoxx High | SPDR Barclays vs. iShares 1 3 Year | SPDR Barclays vs. iShares TIPS Bond | SPDR Barclays vs. iShares 7 10 Year |
| IShares 5 vs. iShares iBoxx High | IShares 5 vs. iShares 1 3 Year | IShares 5 vs. iShares TIPS Bond | IShares 5 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |