Correlation Between IShares II and SPDR Bloomberg
Can any of the company-specific risk be diversified away by investing in both IShares II and SPDR Bloomberg 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 IShares II and SPDR Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares II Public and SPDR Bloomberg Euro, you can compare the effects of market volatilities on IShares II and SPDR Bloomberg 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 IShares II with a short position of SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares II and SPDR Bloomberg.
Diversification Opportunities for IShares II and SPDR Bloomberg
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IShares and SPDR is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding iShares II Public and SPDR Bloomberg Euro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg Euro and IShares II 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 iShares II Public are associated (or correlated) with SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg Euro has no effect on the direction of IShares II i.e., IShares II and SPDR Bloomberg go up and down completely randomly.
Pair Corralation between IShares II and SPDR Bloomberg
If you would invest 16,337 in iShares II Public on December 2, 2024 and sell it today you would earn a total of 387.00 from holding iShares II Public or generate 2.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 4.55% |
Values | Daily Returns |
iShares II Public vs. SPDR Bloomberg Euro
Performance |
Timeline |
iShares II Public |
SPDR Bloomberg Euro |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
IShares II and SPDR Bloomberg Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares II and SPDR Bloomberg
The main advantage of trading using opposite IShares II and SPDR Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares II position performs unexpectedly, SPDR Bloomberg 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 SPDR Bloomberg will offset losses from the drop in SPDR Bloomberg's long position.IShares II vs. iShares MSCI EM | IShares II vs. iShares III Public | IShares II vs. iShares Core MSCI | IShares II vs. iShares France Govt |
SPDR Bloomberg vs. SPDR MSCI World | SPDR Bloomberg vs. SPDR SP Dividend | SPDR Bloomberg vs. SPDR SP 500 | SPDR Bloomberg vs. SPDR BB SB |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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