Correlation Between SPDR Bloomberg and VanEck JP
Can any of the company-specific risk be diversified away by investing in both SPDR Bloomberg and VanEck JP 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 JP 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 JP Morgan, you can compare the effects of market volatilities on SPDR Bloomberg and VanEck JP 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 JP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Bloomberg and VanEck JP.
Diversification Opportunities for SPDR Bloomberg and VanEck JP
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPDR and VanEck is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg Barclays and VanEck JP Morgan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck JP Morgan 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 JP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck JP Morgan has no effect on the direction of SPDR Bloomberg i.e., SPDR Bloomberg and VanEck JP go up and down completely randomly.
Pair Corralation between SPDR Bloomberg and VanEck JP
Given the investment horizon of 90 days SPDR Bloomberg Barclays is expected to generate 0.79 times more return on investment than VanEck JP. However, SPDR Bloomberg Barclays is 1.27 times less risky than VanEck JP. It trades about 0.11 of its potential returns per unit of risk. VanEck JP Morgan is currently generating about 0.03 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Bloomberg Barclays vs. VanEck JP Morgan
Performance |
| Timeline |
| SPDR Bloomberg Barclays |
| VanEck JP Morgan |
SPDR Bloomberg and VanEck JP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Bloomberg and VanEck JP
The main advantage of trading using opposite SPDR Bloomberg and VanEck JP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Bloomberg position performs unexpectedly, VanEck JP 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 JP will offset losses from the drop in VanEck JP'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 JP vs. Invesco Emerging Markets | VanEck JP vs. PIMCO 15 Year | VanEck JP vs. SPDR Bloomberg Emerging | VanEck JP vs. iShares JP Morgan |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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