Correlation Between SPDR Barclays and Blockchain Group
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and Blockchain Group 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 Barclays and Blockchain Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Barclays Euro and Blockchain Group SA, you can compare the effects of market volatilities on SPDR Barclays and Blockchain Group 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 Barclays with a short position of Blockchain Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and Blockchain Group.
Diversification Opportunities for SPDR Barclays and Blockchain Group
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPDR and Blockchain is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Euro and Blockchain Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blockchain Group and SPDR Barclays 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 Barclays Euro are associated (or correlated) with Blockchain Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blockchain Group has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and Blockchain Group go up and down completely randomly.
Pair Corralation between SPDR Barclays and Blockchain Group
Assuming the 90 days trading horizon SPDR Barclays is expected to generate 45.67 times less return on investment than Blockchain Group. But when comparing it to its historical volatility, SPDR Barclays Euro is 18.05 times less risky than Blockchain Group. It trades about 0.05 of its potential returns per unit of risk. Blockchain Group SA is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Blockchain Group SA on August 29, 2024 and sell it today you would earn a total of 19.00 from holding Blockchain Group SA or generate 190.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Barclays Euro vs. Blockchain Group SA
Performance |
| Timeline |
| SPDR Barclays Euro |
| Blockchain Group |
SPDR Barclays and Blockchain Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and Blockchain Group
The main advantage of trading using opposite SPDR Barclays and Blockchain Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, Blockchain Group 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 Blockchain Group will offset losses from the drop in Blockchain Group's long position.| SPDR Barclays vs. Amundi ETF Govies | SPDR Barclays vs. iShares STOXX Europe | SPDR Barclays vs. iShares Global Infrastructure | SPDR Barclays vs. SPDR MSCI World |
| Blockchain Group vs. Adocia | Blockchain Group vs. Manitou BF SA | Blockchain Group vs. Ossiam Minimum Variance | Blockchain Group vs. Ekinops SA |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |