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
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and IShares is 0.0. 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 20, 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 | Flat |
| Strength | Insignificant |
| 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. SPDR Barclays Short | SPDR Barclays vs. SPDR Bloomberg Emerging | SPDR Barclays vs. SPDR Barclays Long | SPDR Barclays vs. SPDR Barclays Short |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |