Correlation Between SPDR Series and TARGET
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By analyzing existing cross correlation between SPDR Series Trust and TARGET P 65, you can compare the effects of market volatilities on SPDR Series and TARGET 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 TARGET. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Series and TARGET.
Diversification Opportunities for SPDR Series and TARGET
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between SPDR and TARGET is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Series Trust and TARGET P 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TARGET P 65 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 TARGET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TARGET P 65 has no effect on the direction of SPDR Series i.e., SPDR Series and TARGET go up and down completely randomly.
Pair Corralation between SPDR Series and TARGET
Given the investment horizon of 90 days SPDR Series is expected to generate 65.02 times less return on investment than TARGET. But when comparing it to its historical volatility, SPDR Series Trust is 203.81 times less risky than TARGET. It trades about 1.15 of its potential returns per unit of risk. TARGET P 65 is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 10,958 in TARGET P 65 on October 21, 2024 and sell it today you would earn a total of 764.00 from holding TARGET P 65 or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.58% |
| Values | Daily Returns |
SPDR Series Trust vs. TARGET P 65
Performance |
| Timeline |
| SPDR Series Trust |
| TARGET P 65 |
SPDR Series and TARGET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Series and TARGET
The main advantage of trading using opposite SPDR Series and TARGET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Series position performs unexpectedly, TARGET 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 TARGET will offset losses from the drop in TARGET'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 |
| TARGET vs. Brandywine Realty Trust | TARGET vs. Keurig Dr Pepper | TARGET vs. Visteon Corp | TARGET vs. Vita Coco |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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