Correlation Between Abrdn Bloomberg and SPDR Series
Can any of the company-specific risk be diversified away by investing in both Abrdn Bloomberg and SPDR Series 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 Abrdn Bloomberg and SPDR Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between abrdn Bloomberg All and SPDR Series Trust, you can compare the effects of market volatilities on Abrdn Bloomberg and SPDR Series 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 Abrdn Bloomberg with a short position of SPDR Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Bloomberg and SPDR Series.
Diversification Opportunities for Abrdn Bloomberg and SPDR Series
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Abrdn and SPDR is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding abrdn Bloomberg All and SPDR Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Series Trust and Abrdn Bloomberg 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 abrdn Bloomberg All are associated (or correlated) with SPDR Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Series Trust has no effect on the direction of Abrdn Bloomberg i.e., Abrdn Bloomberg and SPDR Series go up and down completely randomly.
Pair Corralation between Abrdn Bloomberg and SPDR Series
Considering the 90-day investment horizon abrdn Bloomberg All is expected to generate 1.16 times more return on investment than SPDR Series. However, Abrdn Bloomberg is 1.16 times more volatile than SPDR Series Trust. It trades about 0.42 of its potential returns per unit of risk. SPDR Series Trust is currently generating about 0.43 per unit of risk. If you would invest 1,944 in abrdn Bloomberg All on October 21, 2024 and sell it today you would earn a total of 126.00 from holding abrdn Bloomberg All or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
abrdn Bloomberg All vs. SPDR Series Trust
Performance |
| Timeline |
| abrdn Bloomberg All |
| SPDR Series Trust |
Abrdn Bloomberg and SPDR Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abrdn Bloomberg and SPDR Series
The main advantage of trading using opposite Abrdn Bloomberg and SPDR Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abrdn Bloomberg position performs unexpectedly, SPDR Series 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 Series will offset losses from the drop in SPDR Series' long position.| Abrdn Bloomberg vs. GraniteShares Bloomberg Commodity | Abrdn Bloomberg vs. abrdn Bloomberg All | Abrdn Bloomberg vs. PIMCO 15 Year | Abrdn Bloomberg vs. Invesco Optimum Yield |
| SPDR Series vs. Neuberger Berman Commodity | SPDR Series vs. abrdn Bloomberg All | SPDR Series vs. abrdn Bloomberg All | SPDR Series vs. Direxion Auspice Broad |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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