Correlation Between SPDR Series and ONCOR
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By analyzing existing cross correlation between SPDR Series Trust and ONCOR ELEC DELIVERY, you can compare the effects of market volatilities on SPDR Series and ONCOR 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 SPDR Series with a short position of ONCOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Series and ONCOR.
Diversification Opportunities for SPDR Series and ONCOR
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SPDR and ONCOR is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Series Trust and ONCOR ELEC DELIVERY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONCOR ELEC DELIVERY and SPDR Series 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 SPDR Series Trust are associated (or correlated) with ONCOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONCOR ELEC DELIVERY has no effect on the direction of SPDR Series i.e., SPDR Series and ONCOR go up and down completely randomly.
Pair Corralation between SPDR Series and ONCOR
Given the investment horizon of 90 days SPDR Series is expected to generate 1.3 times less return on investment than ONCOR. But when comparing it to its historical volatility, SPDR Series Trust is 118.91 times less risky than ONCOR. It trades about 1.1 of its potential returns per unit of risk. ONCOR ELEC DELIVERY is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 10,112 in ONCOR ELEC DELIVERY on November 2, 2024 and sell it today you would earn a total of 35.00 from holding ONCOR ELEC DELIVERY or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 73.79% |
| Values | Daily Returns |
SPDR Series Trust vs. ONCOR ELEC DELIVERY
Performance |
| Timeline |
| SPDR Series Trust |
| ONCOR ELEC DELIVERY |
SPDR Series and ONCOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Series and ONCOR
The main advantage of trading using opposite SPDR Series and ONCOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Series position performs unexpectedly, ONCOR 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 ONCOR will offset losses from the drop in ONCOR's long position.| SPDR Series vs. WisdomTree Floating Rate | SPDR Series vs. iShares 0 3 Month | SPDR Series vs. SPDR Bloomberg 1 3 | SPDR Series vs. iShares Treasury Floating |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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