Correlation Between SPDR Index and Promotora
Can any of the company-specific risk be diversified away by investing in both SPDR Index and Promotora 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 Index and Promotora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Index Shares and Promotora y Operadora, you can compare the effects of market volatilities on SPDR Index and Promotora 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 Index with a short position of Promotora. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Index and Promotora.
Diversification Opportunities for SPDR Index and Promotora
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between SPDR and Promotora is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Index Shares and Promotora y Operadora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Promotora y Operadora and SPDR Index 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 Index Shares are associated (or correlated) with Promotora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Promotora y Operadora has no effect on the direction of SPDR Index i.e., SPDR Index and Promotora go up and down completely randomly.
Pair Corralation between SPDR Index and Promotora
Assuming the 90 days trading horizon SPDR Index Shares is expected to generate 1.28 times more return on investment than Promotora. However, SPDR Index is 1.28 times more volatile than Promotora y Operadora. It trades about 0.22 of its potential returns per unit of risk. Promotora y Operadora is currently generating about 0.12 per unit of risk. If you would invest 99,900 in SPDR Index Shares on December 1, 2024 and sell it today you would earn a total of 10,728 from holding SPDR Index Shares or generate 10.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Index Shares vs. Promotora y Operadora
Performance |
| Timeline |
| SPDR Index Shares |
| Promotora y Operadora |
SPDR Index and Promotora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Index and Promotora
The main advantage of trading using opposite SPDR Index and Promotora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Index position performs unexpectedly, Promotora 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 Promotora will offset losses from the drop in Promotora's long position.| SPDR Index vs. SPDR Dow Jones | SPDR Index vs. SPDR Gold Trust | SPDR Index vs. SPDR SP 500 | SPDR Index vs. SPDR Series Trust |
| Promotora vs. Gruma SAB de | Promotora vs. Grupo Aeroportuario del | Promotora vs. Grupo Aeroportuario del | Promotora vs. Grupo Aeroportuario del |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |