Correlation Between SPDR Bloomberg and BlackRock AAA
Can any of the company-specific risk be diversified away by investing in both SPDR Bloomberg and BlackRock AAA 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 Bloomberg and BlackRock AAA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Bloomberg Investment and BlackRock AAA CLO, you can compare the effects of market volatilities on SPDR Bloomberg and BlackRock AAA 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 Bloomberg with a short position of BlackRock AAA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Bloomberg and BlackRock AAA.
Diversification Opportunities for SPDR Bloomberg and BlackRock AAA
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between SPDR and BlackRock is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg Investment and BlackRock AAA CLO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock AAA CLO and SPDR Bloomberg 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 Bloomberg Investment are associated (or correlated) with BlackRock AAA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock AAA CLO has no effect on the direction of SPDR Bloomberg i.e., SPDR Bloomberg and BlackRock AAA go up and down completely randomly.
Pair Corralation between SPDR Bloomberg and BlackRock AAA
Given the investment horizon of 90 days SPDR Bloomberg is expected to generate 1.9 times less return on investment than BlackRock AAA. But when comparing it to its historical volatility, SPDR Bloomberg Investment is 1.53 times less risky than BlackRock AAA. It trades about 0.37 of its potential returns per unit of risk. BlackRock AAA CLO is currently generating about 0.46 of returns per unit of risk over similar time horizon. If you would invest 5,164 in BlackRock AAA CLO on August 26, 2024 and sell it today you would earn a total of 32.00 from holding BlackRock AAA CLO or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Bloomberg Investment vs. BlackRock AAA CLO
Performance |
| Timeline |
| SPDR Bloomberg Investment |
| BlackRock AAA CLO |
SPDR Bloomberg and BlackRock AAA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Bloomberg and BlackRock AAA
The main advantage of trading using opposite SPDR Bloomberg and BlackRock AAA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Bloomberg position performs unexpectedly, BlackRock AAA 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 BlackRock AAA will offset losses from the drop in BlackRock AAA's long position.| SPDR Bloomberg vs. iShares Floating Rate | SPDR Bloomberg vs. VanEck Investment Grade | SPDR Bloomberg vs. SPDR Blackstone Senior | SPDR Bloomberg vs. Invesco Ultra Short |
| BlackRock AAA vs. Janus Detroit Street | BlackRock AAA vs. Janus Detroit Street | BlackRock AAA vs. VanEck ETF Trust | BlackRock AAA vs. Panagram Bbb B Clo |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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