Correlation Between Sage Advisory and IShares IBoxx
Can any of the company-specific risk be diversified away by investing in both Sage Advisory 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 Sage Advisory and IShares IBoxx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sage Advisory Services and iShares iBoxx Investment, you can compare the effects of market volatilities on Sage Advisory 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 Sage Advisory with a short position of IShares IBoxx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sage Advisory and IShares IBoxx.
Diversification Opportunities for Sage Advisory and IShares IBoxx
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sage and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sage Advisory Services 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 Sage Advisory 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 Sage Advisory Services 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 Sage Advisory i.e., Sage Advisory and IShares IBoxx go up and down completely randomly.
Pair Corralation between Sage Advisory and IShares IBoxx
If you would invest (100.00) in Sage Advisory Services on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Sage Advisory Services or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sage Advisory Services vs. iShares iBoxx Investment
Performance |
| Timeline |
| Sage Advisory Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares iBoxx Investment |
Sage Advisory and IShares IBoxx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sage Advisory and IShares IBoxx
The main advantage of trading using opposite Sage Advisory and IShares IBoxx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sage Advisory 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.| Sage Advisory vs. iShares iBonds 2026 | Sage Advisory vs. iShares iBonds Dec | Sage Advisory vs. iShares 25 Year |
| IShares IBoxx vs. iShares iBonds 2026 | IShares IBoxx vs. iShares iBonds Dec | IShares IBoxx vs. iShares 25 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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