Correlation Between SPDR Bloomberg and SPDR Blackstone
Can any of the company-specific risk be diversified away by investing in both SPDR Bloomberg and SPDR Blackstone 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 SPDR Blackstone 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 SPDR Blackstone Senior, you can compare the effects of market volatilities on SPDR Bloomberg and SPDR Blackstone 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 SPDR Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Bloomberg and SPDR Blackstone.
Diversification Opportunities for SPDR Bloomberg and SPDR Blackstone
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between SPDR and SPDR is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg Investment and SPDR Blackstone Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Blackstone Senior 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 SPDR Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Blackstone Senior has no effect on the direction of SPDR Bloomberg i.e., SPDR Bloomberg and SPDR Blackstone go up and down completely randomly.
Pair Corralation between SPDR Bloomberg and SPDR Blackstone
Given the investment horizon of 90 days SPDR Bloomberg is expected to generate 1.63 times less return on investment than SPDR Blackstone. But when comparing it to its historical volatility, SPDR Bloomberg Investment is 2.22 times less risky than SPDR Blackstone. It trades about 0.44 of its potential returns per unit of risk. SPDR Blackstone Senior is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 3,624 in SPDR Blackstone Senior on August 27, 2024 and sell it today you would earn a total of 574.00 from holding SPDR Blackstone Senior or generate 15.84% 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. SPDR Blackstone Senior
Performance |
| Timeline |
| SPDR Bloomberg Investment |
| SPDR Blackstone Senior |
SPDR Bloomberg and SPDR Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Bloomberg and SPDR Blackstone
The main advantage of trading using opposite SPDR Bloomberg and SPDR Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Bloomberg position performs unexpectedly, SPDR Blackstone 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 Blackstone will offset losses from the drop in SPDR Blackstone'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 |
| SPDR Blackstone vs. Invesco Senior Loan | SPDR Blackstone vs. First Trust Senior | SPDR Blackstone vs. SPDR Bloomberg Short | SPDR Blackstone vs. SPDR Bloomberg Investment |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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