Correlation Between IShares Core and SPDR Bloomberg

Can any of the company-specific risk be diversified away by investing in both IShares Core 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 Core 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 Core MSCI and SPDR Bloomberg 1 3, you can compare the effects of market volatilities on IShares Core 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 Core with a short position of SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and SPDR Bloomberg.

Diversification Opportunities for IShares Core and SPDR Bloomberg

0.93

Correlation Coefficient

IShares Core  SPDR Bloomberg

Almost no diversification

The 3 months correlation between IShares and SPDR is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core MSCI and SPDR Bloomberg 1 3 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg 1 and IShares Core 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 Core MSCI 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 1 has no effect on the direction of IShares Core i.e., IShares Core and SPDR Bloomberg go up and down completely randomly.

Pair Corralation between IShares Core and SPDR Bloomberg

Assuming the 90 days trading horizon iShares Core MSCI is expected to generate 12.31 times more return on investment than SPDR Bloomberg. However, IShares Core is 12.31 times more volatile than SPDR Bloomberg 1 3. It trades about 0.19 of its potential returns per unit of risk. SPDR Bloomberg 1 3 is currently generating about 0.25 per unit of risk. If you would invest  3,720  in iShares Core MSCI on May 15, 2025 and sell it today you would earn a total of  342.00  from holding iShares Core MSCI or generate 9.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

iShares Core MSCI  vs.  SPDR Bloomberg 1 3

iShares Core MSCI

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Core MSCI are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, IShares Core may actually be approaching a critical reversion point that can send shares even higher in September 2025.

SPDR Bloomberg 1

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Bloomberg 1 3 are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, SPDR Bloomberg is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with IShares Core and SPDR Bloomberg

The main advantage of trading using opposite IShares Core and SPDR Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core 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.

The idea behind iShares Core MSCI and SPDR Bloomberg 1 3 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.