Correlation Between Fieldstone UVA and SPDR Barclays
Can any of the company-specific risk be diversified away by investing in both Fieldstone UVA and SPDR Barclays 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 Fieldstone UVA and SPDR Barclays into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fieldstone UVA Unconstrained and SPDR Barclays Long, you can compare the effects of market volatilities on Fieldstone UVA and SPDR Barclays 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 Fieldstone UVA with a short position of SPDR Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fieldstone UVA and SPDR Barclays.
Diversification Opportunities for Fieldstone UVA and SPDR Barclays
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fieldstone and SPDR is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fieldstone UVA Unconstrained and SPDR Barclays Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Barclays Long and Fieldstone UVA 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 Fieldstone UVA Unconstrained are associated (or correlated) with SPDR Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Barclays Long has no effect on the direction of Fieldstone UVA i.e., Fieldstone UVA and SPDR Barclays go up and down completely randomly.
Pair Corralation between Fieldstone UVA and SPDR Barclays
Given the investment horizon of 90 days Fieldstone UVA is expected to generate 3.48 times less return on investment than SPDR Barclays. In addition to that, Fieldstone UVA is 1.57 times more volatile than SPDR Barclays Long. It trades about 0.05 of its total potential returns per unit of risk. SPDR Barclays Long is currently generating about 0.28 per unit of volatility. If you would invest 2,187 in SPDR Barclays Long on November 9, 2024 and sell it today you would earn a total of 74.00 from holding SPDR Barclays Long or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fieldstone UVA Unconstrained vs. SPDR Barclays Long
Performance |
| Timeline |
| Fieldstone UVA Uncon |
| SPDR Barclays Long |
Fieldstone UVA and SPDR Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fieldstone UVA and SPDR Barclays
The main advantage of trading using opposite Fieldstone UVA and SPDR Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fieldstone UVA position performs unexpectedly, SPDR Barclays 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 SPDR Barclays will offset losses from the drop in SPDR Barclays' long position.| Fieldstone UVA vs. FlexShares Core Select | Fieldstone UVA vs. Franklin Liberty Investment | Fieldstone UVA vs. Hartford Total Return |
| SPDR Barclays vs. iShares 10 Year | SPDR Barclays vs. SPDR Barclays Intermediate | SPDR Barclays vs. SPDR Barclays Short | SPDR Barclays vs. FlexShares Credit Scored Long |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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