Correlation Between SPDR Barclays and Memscap Regpt
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and Memscap Regpt 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 Memscap Regpt 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 Memscap Regpt, you can compare the effects of market volatilities on SPDR Barclays and Memscap Regpt 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 Memscap Regpt. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and Memscap Regpt.
Diversification Opportunities for SPDR Barclays and Memscap Regpt
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and Memscap is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Euro and Memscap Regpt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Memscap Regpt 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 Memscap Regpt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Memscap Regpt has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and Memscap Regpt go up and down completely randomly.
Pair Corralation between SPDR Barclays and Memscap Regpt
Assuming the 90 days trading horizon SPDR Barclays Euro is expected to generate 0.05 times more return on investment than Memscap Regpt. However, SPDR Barclays Euro is 18.46 times less risky than Memscap Regpt. It trades about 0.06 of its potential returns per unit of risk. Memscap Regpt is currently generating about -0.23 per unit of risk. If you would invest 5,361 in SPDR Barclays Euro on August 24, 2024 and sell it today you would earn a total of 12.00 from holding SPDR Barclays Euro or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Barclays Euro vs. Memscap Regpt
Performance |
| Timeline |
| SPDR Barclays Euro |
| Memscap Regpt |
SPDR Barclays and Memscap Regpt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and Memscap Regpt
The main advantage of trading using opposite SPDR Barclays and Memscap Regpt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, Memscap Regpt 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 Memscap Regpt will offset losses from the drop in Memscap Regpt'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 |
| Memscap Regpt vs. Vergnet | Memscap Regpt vs. DBT SA | Memscap Regpt vs. Drone Volt SA | Memscap Regpt vs. Gaussin |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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