Correlation Between SPDR Bloomberg and VanEck China
Can any of the company-specific risk be diversified away by investing in both SPDR Bloomberg and VanEck China 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 SPDR Bloomberg and VanEck China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Bloomberg Barclays and VanEck China Bond, you can compare the effects of market volatilities on SPDR Bloomberg and VanEck China 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 Bloomberg with a short position of VanEck China. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Bloomberg and VanEck China.
Diversification Opportunities for SPDR Bloomberg and VanEck China
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPDR and VanEck is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg Barclays and VanEck China Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck China Bond and SPDR 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 SPDR Bloomberg Barclays are associated (or correlated) with VanEck China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck China Bond has no effect on the direction of SPDR Bloomberg i.e., SPDR Bloomberg and VanEck China go up and down completely randomly.
Pair Corralation between SPDR Bloomberg and VanEck China
Given the investment horizon of 90 days SPDR Bloomberg Barclays is expected to generate 1.13 times more return on investment than VanEck China. However, SPDR Bloomberg is 1.13 times more volatile than VanEck China Bond. It trades about 0.11 of its potential returns per unit of risk. VanEck China Bond is currently generating about 0.04 per unit of risk. If you would invest 2,328 in SPDR Bloomberg Barclays on September 1, 2024 and sell it today you would earn a total of 130.00 from holding SPDR Bloomberg Barclays or generate 5.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Bloomberg Barclays vs. VanEck China Bond
Performance |
| Timeline |
| SPDR Bloomberg Barclays |
| VanEck China Bond |
SPDR Bloomberg and VanEck China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Bloomberg and VanEck China
The main advantage of trading using opposite SPDR Bloomberg and VanEck China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Bloomberg position performs unexpectedly, VanEck China 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 VanEck China will offset losses from the drop in VanEck China's long position.| SPDR Bloomberg vs. SPDR DoubleLine Emerging | SPDR Bloomberg vs. SPDR SSGA Fixed | SPDR Bloomberg vs. SPDR Series Trust | SPDR Bloomberg vs. SSGA Active Trust |
| VanEck China vs. Xtrackers California Municipal | VanEck China vs. IQ MacKay Municipal | VanEck China vs. IQ MacKay Municipal | VanEck China vs. ALPS Intermediate Municipal |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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