Correlation Between SPDR Barclays and Speed Rabbit
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and Speed Rabbit 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 Speed Rabbit 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 Speed Rabbit Pizza, you can compare the effects of market volatilities on SPDR Barclays and Speed Rabbit 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 Speed Rabbit. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and Speed Rabbit.
Diversification Opportunities for SPDR Barclays and Speed Rabbit
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPDR and Speed is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Euro and Speed Rabbit Pizza in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Speed Rabbit Pizza 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 Speed Rabbit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Speed Rabbit Pizza has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and Speed Rabbit go up and down completely randomly.
Pair Corralation between SPDR Barclays and Speed Rabbit
Assuming the 90 days trading horizon SPDR Barclays Euro is expected to generate 0.07 times more return on investment than Speed Rabbit. However, SPDR Barclays Euro is 13.43 times less risky than Speed Rabbit. It trades about 0.22 of its potential returns per unit of risk. Speed Rabbit Pizza is currently generating about -0.21 per unit of risk. If you would invest 5,294 in SPDR Barclays Euro on January 17, 2025 and sell it today you would earn a total of 51.00 from holding SPDR Barclays Euro or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Barclays Euro vs. Speed Rabbit Pizza
Performance |
| Timeline |
| SPDR Barclays Euro |
| Speed Rabbit Pizza |
SPDR Barclays and Speed Rabbit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and Speed Rabbit
The main advantage of trading using opposite SPDR Barclays and Speed Rabbit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, Speed Rabbit 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 Speed Rabbit will offset losses from the drop in Speed Rabbit'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 |
| Speed Rabbit vs. X Fab Silicon | Speed Rabbit vs. Media 6 SA | Speed Rabbit vs. ZCCM Investments Holdings | Speed Rabbit vs. Fill Up Media |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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