Correlation Between Axonic Strategic and Spinnaker ETF
Can any of the company-specific risk be diversified away by investing in both Axonic Strategic and Spinnaker ETF 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 Axonic Strategic and Spinnaker ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axonic Strategic Income and Spinnaker ETF Series, you can compare the effects of market volatilities on Axonic Strategic and Spinnaker ETF 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 Axonic Strategic with a short position of Spinnaker ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axonic Strategic and Spinnaker ETF.
Diversification Opportunities for Axonic Strategic and Spinnaker ETF
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Axonic and Spinnaker is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Axonic Strategic Income and Spinnaker ETF Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spinnaker ETF Series and Axonic Strategic 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 Axonic Strategic Income are associated (or correlated) with Spinnaker ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spinnaker ETF Series has no effect on the direction of Axonic Strategic i.e., Axonic Strategic and Spinnaker ETF go up and down completely randomly.
Pair Corralation between Axonic Strategic and Spinnaker ETF
Assuming the 90 days horizon Axonic Strategic is expected to generate 1.3 times less return on investment than Spinnaker ETF. In addition to that, Axonic Strategic is 1.81 times more volatile than Spinnaker ETF Series. It trades about 0.06 of its total potential returns per unit of risk. Spinnaker ETF Series is currently generating about 0.15 per unit of volatility. If you would invest 1,007 in Spinnaker ETF Series on August 25, 2024 and sell it today you would earn a total of 3.00 from holding Spinnaker ETF Series or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axonic Strategic Income vs. Spinnaker ETF Series
Performance |
| Timeline |
| Axonic Strategic Income |
| Spinnaker ETF Series |
Axonic Strategic and Spinnaker ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axonic Strategic and Spinnaker ETF
The main advantage of trading using opposite Axonic Strategic and Spinnaker ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axonic Strategic position performs unexpectedly, Spinnaker ETF 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 Spinnaker ETF will offset losses from the drop in Spinnaker ETF's long position.| Axonic Strategic vs. Axonic Strategic Income | Axonic Strategic vs. AB Active ETFs, | Axonic Strategic vs. iShares Core SP | Axonic Strategic vs. Vanguard Momentum Factor |
| Spinnaker ETF vs. Valued Advisers Trust | Spinnaker ETF vs. Columbia Diversified Fixed | Spinnaker ETF vs. Principal Exchange Traded Funds | Spinnaker ETF vs. Doubleline Etf Trust |
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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