Correlation Between Gabelli ETFs and SPDR SP
Can any of the company-specific risk be diversified away by investing in both Gabelli ETFs and SPDR SP 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 Gabelli ETFs and SPDR SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli ETFs Trust and SPDR SP Kensho, you can compare the effects of market volatilities on Gabelli ETFs and SPDR SP 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 Gabelli ETFs with a short position of SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli ETFs and SPDR SP.
Diversification Opportunities for Gabelli ETFs and SPDR SP
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gabelli and SPDR is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli ETFs Trust and SPDR SP Kensho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Kensho and Gabelli ETFs 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 Gabelli ETFs Trust are associated (or correlated) with SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP Kensho has no effect on the direction of Gabelli ETFs i.e., Gabelli ETFs and SPDR SP go up and down completely randomly.
Pair Corralation between Gabelli ETFs and SPDR SP
Given the investment horizon of 90 days Gabelli ETFs is expected to generate 2.36 times less return on investment than SPDR SP. But when comparing it to its historical volatility, Gabelli ETFs Trust is 1.21 times less risky than SPDR SP. It trades about 0.19 of its potential returns per unit of risk. SPDR SP Kensho is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 5,162 in SPDR SP Kensho on August 30, 2024 and sell it today you would earn a total of 751.00 from holding SPDR SP Kensho or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli ETFs Trust vs. SPDR SP Kensho
Performance |
| Timeline |
| Gabelli ETFs Trust |
| SPDR SP Kensho |
Gabelli ETFs and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli ETFs and SPDR SP
The main advantage of trading using opposite Gabelli ETFs and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli ETFs position performs unexpectedly, SPDR SP 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 SP will offset losses from the drop in SPDR SP's long position.| Gabelli ETFs vs. First Trust Exchange Traded | Gabelli ETFs vs. Ultimus Managers Trust | Gabelli ETFs vs. Horizon Kinetics Medical | Gabelli ETFs vs. Harbor Health Care |
| SPDR SP vs. Materials Select Sector | SPDR SP vs. Consumer Discretionary Select | SPDR SP vs. Consumer Staples Select | SPDR SP vs. Health Care Select |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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