Correlation Between IShares Moderate and SPDR SP

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

By analyzing existing cross correlation between iShares Moderate Portfolio and SPDR SP 500, you can compare the effects of market volatilities on IShares Moderate and SPDR SP 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 Moderate with a short position of SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Moderate and SPDR SP.

Diversification Opportunities for IShares Moderate and SPDR SP

0.0

Correlation Coefficient

IShares Moderate  SPDR SP

Pay attention - limited upside

The 3 months correlation between IShares and SPDR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares Moderate Portfolio and SPDR SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP 500 and IShares Moderate 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 Moderate Portfolio are associated (or correlated) with SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP 500 has no effect on the direction of IShares Moderate i.e., IShares Moderate and SPDR SP go up and down completely randomly.

Pair Corralation between IShares Moderate and SPDR SP

If you would invest  1,351  in SPDR SP 500 on September 3, 2025 and sell it today you would earn a total of  92.00  from holding SPDR SP 500 or generate 6.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.54%
Values	Daily Returns

iShares Moderate Portfolio  vs.  SPDR SP 500

iShares Moderate Por

Risk-Adjusted Performance

Weakest

Over the last 90 days iShares Moderate Portfolio has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, IShares Moderate is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

SPDR SP 500

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR SP 500 are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SPDR SP may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with IShares Moderate and SPDR SP

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

The idea behind iShares Moderate Portfolio and SPDR SP 500 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.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.