Correlation Between Intermediate Bond and State Street
Can any of the company-specific risk be diversified away by investing in both Intermediate Bond and State Street 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 Intermediate Bond and State Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intermediate Bond Fund and State Street Target, you can compare the effects of market volatilities on Intermediate Bond and State Street 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 Intermediate Bond with a short position of State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Bond and State Street.
Diversification Opportunities for Intermediate Bond and State Street
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Intermediate and State is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Bond Fund and State Street Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Target and Intermediate Bond 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 Intermediate Bond Fund are associated (or correlated) with State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Target has no effect on the direction of Intermediate Bond i.e., Intermediate Bond and State Street go up and down completely randomly.
Pair Corralation between Intermediate Bond and State Street
If you would invest 1,201 in State Street Target on June 12, 2025 and sell it today you would earn a total of 509.00 from holding State Street Target or generate 42.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Intermediate Bond Fund vs. State Street Target
Performance |
| Timeline |
| Intermediate Bond |
Risk-Adjusted Performance
Good
Weak | Strong |
| State Street Target |
Intermediate Bond and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermediate Bond and State Street
The main advantage of trading using opposite Intermediate Bond and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate Bond position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| Intermediate Bond vs. Vanguard Financials Index | Intermediate Bond vs. Blackrock Financial Institutions | Intermediate Bond vs. Gabelli Global Financial | Intermediate Bond vs. Transamerica Financial Life |
| State Street vs. Ab Bond Inflation | State Street vs. Lord Abbett Inflation | State Street vs. Ab Bond Inflation | State Street vs. Inflation Linked Fixed Income |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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