Correlation Between Barclays ETN and SPDR Portfolio
Can any of the company-specific risk be diversified away by investing in both Barclays ETN and SPDR Portfolio 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 Barclays ETN and SPDR Portfolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays ETN Select and SPDR Portfolio Europe, you can compare the effects of market volatilities on Barclays ETN and SPDR Portfolio 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 Barclays ETN with a short position of SPDR Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays ETN and SPDR Portfolio.
Diversification Opportunities for Barclays ETN and SPDR Portfolio
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barclays and SPDR is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Barclays ETN Select and SPDR Portfolio Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Portfolio Europe and Barclays ETN 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 Barclays ETN Select are associated (or correlated) with SPDR Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Portfolio Europe has no effect on the direction of Barclays ETN i.e., Barclays ETN and SPDR Portfolio go up and down completely randomly.
Pair Corralation between Barclays ETN and SPDR Portfolio
Given the investment horizon of 90 days Barclays ETN Select is expected to generate 1.04 times more return on investment than SPDR Portfolio. However, Barclays ETN is 1.04 times more volatile than SPDR Portfolio Europe. It trades about 0.18 of its potential returns per unit of risk. SPDR Portfolio Europe is currently generating about 0.08 per unit of risk. If you would invest 2,041 in Barclays ETN Select on September 1, 2024 and sell it today you would earn a total of 987.00 from holding Barclays ETN Select or generate 48.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Barclays ETN Select vs. SPDR Portfolio Europe
Performance |
| Timeline |
| Barclays ETN Select |
| SPDR Portfolio Europe |
Barclays ETN and SPDR Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays ETN and SPDR Portfolio
The main advantage of trading using opposite Barclays ETN and SPDR Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays ETN position performs unexpectedly, SPDR Portfolio 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 Portfolio will offset losses from the drop in SPDR Portfolio's long position.| Barclays ETN vs. First Trust North | Barclays ETN vs. Global X MLP | Barclays ETN vs. Tortoise North American | Barclays ETN vs. UBS AG London |
| SPDR Portfolio vs. Pacer Trendpilot Mid | SPDR Portfolio vs. Pacer Trendpilot Large | SPDR Portfolio vs. Pacer Trendpilot 100 | SPDR Portfolio vs. Pacer Trendpilot International |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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