Correlation Between IShares IBonds and Vanguard Global
Can any of the company-specific risk be diversified away by investing in both IShares IBonds and Vanguard Global 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 IBonds and Vanguard Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares iBonds Dec and Vanguard Global Credit, you can compare the effects of market volatilities on IShares IBonds and Vanguard Global 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 IBonds with a short position of Vanguard Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares IBonds and Vanguard Global.
Diversification Opportunities for IShares IBonds and Vanguard Global
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Vanguard is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding iShares iBonds Dec and Vanguard Global Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Global Credit and IShares IBonds 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 iBonds Dec are associated (or correlated) with Vanguard Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Global Credit has no effect on the direction of IShares IBonds i.e., IShares IBonds and Vanguard Global go up and down completely randomly.
Pair Corralation between IShares IBonds and Vanguard Global
Given the investment horizon of 90 days IShares IBonds is expected to generate 1.48 times less return on investment than Vanguard Global. But when comparing it to its historical volatility, iShares iBonds Dec is 1.37 times less risky than Vanguard Global. It trades about 0.16 of its potential returns per unit of risk. Vanguard Global Credit is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 960.00 in Vanguard Global Credit on August 14, 2025 and sell it today you would earn a total of 20.00 from holding Vanguard Global Credit or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares iBonds Dec vs. Vanguard Global Credit
Performance |
| Timeline |
| iShares iBonds Dec |
| Vanguard Global Credit |
IShares IBonds and Vanguard Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares IBonds and Vanguard Global
The main advantage of trading using opposite IShares IBonds and Vanguard Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares IBonds position performs unexpectedly, Vanguard Global 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 Vanguard Global will offset losses from the drop in Vanguard Global's long position.| IShares IBonds vs. JPMorgan Inflation Managed | IShares IBonds vs. Bondbloxx ETF Trust | IShares IBonds vs. iShares Morningstar Small Cap | IShares IBonds vs. iShares MSCI Hong |
| Vanguard Global vs. Putnam ETF Trust | Vanguard Global vs. AB Active ETFs, | Vanguard Global vs. iShares Trust | Vanguard Global vs. Davis Select Equity |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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