Correlation Between Van Eck and IShares IBonds

Can any of the company-specific risk be diversified away by investing in both Van Eck and IShares IBonds 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 Van Eck and IShares IBonds into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Van Eck and iShares iBonds Dec, you can compare the effects of market volatilities on Van Eck and IShares IBonds 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 Van Eck with a short position of IShares IBonds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Van Eck and IShares IBonds.

Diversification Opportunities for Van Eck and IShares IBonds

-0.21

Correlation Coefficient

Van Eck  IShares IBonds

Very good diversification

The 3 months correlation between Van and IShares is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Van Eck and iShares iBonds Dec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares iBonds Dec and Van Eck 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 Van Eck are associated (or correlated) with IShares IBonds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares iBonds Dec has no effect on the direction of Van Eck i.e., Van Eck and IShares IBonds go up and down completely randomly.

Pair Corralation between Van Eck and IShares IBonds

Considering the 90-day investment horizon Van Eck is expected to under-perform the IShares IBonds. In addition to that, Van Eck is 4.52 times more volatile than iShares iBonds Dec. It trades about -0.05 of its total potential returns per unit of risk. iShares iBonds Dec is currently generating about 0.35 per unit of volatility. If you would invest  2,389  in iShares iBonds Dec on May 6, 2025 and sell it today you would earn a total of  28.50  from holding iShares iBonds Dec or generate 1.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	50.79%
Values	Daily Returns

Van Eck  vs.  iShares iBonds Dec

Van Eck

Risk-Adjusted Performance

Very Weak

Over the last 90 days Van Eck has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, Van Eck is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

iShares iBonds Dec

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in iShares iBonds Dec are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, IShares IBonds is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Van Eck and IShares IBonds

The main advantage of trading using opposite Van Eck and IShares IBonds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Van Eck position performs unexpectedly, IShares IBonds 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 IBonds will offset losses from the drop in IShares IBonds' long position.

The idea behind Van Eck and iShares iBonds Dec 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..