Correlation Between SPDR SP and Xtrackers MSCI
Can any of the company-specific risk be diversified away by investing in both SPDR SP and Xtrackers MSCI 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 SP and Xtrackers MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP China and Xtrackers MSCI All, you can compare the effects of market volatilities on SPDR SP and Xtrackers MSCI 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 SP with a short position of Xtrackers MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and Xtrackers MSCI.
Diversification Opportunities for SPDR SP and Xtrackers MSCI
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and Xtrackers is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP China and Xtrackers MSCI All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers MSCI All and SPDR SP 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 SP China are associated (or correlated) with Xtrackers MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers MSCI All has no effect on the direction of SPDR SP i.e., SPDR SP and Xtrackers MSCI go up and down completely randomly.
Pair Corralation between SPDR SP and Xtrackers MSCI
If you would invest 6,837 in SPDR SP China on August 26, 2024 and sell it today you would earn a total of 707.00 from holding SPDR SP China or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.4% |
| Values | Daily Returns |
SPDR SP China vs. Xtrackers MSCI All
Performance |
| Timeline |
| SPDR SP China |
| Xtrackers MSCI All |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR SP and Xtrackers MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and Xtrackers MSCI
The main advantage of trading using opposite SPDR SP and Xtrackers MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, Xtrackers MSCI 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 Xtrackers MSCI will offset losses from the drop in Xtrackers MSCI's long position.| SPDR SP vs. iShares MSCI Singapore | SPDR SP vs. iShares MSCI Taiwan | SPDR SP vs. iShares MSCI Malaysia | SPDR SP vs. iShares MSCI Australia |
| Xtrackers MSCI vs. Formidable Fortress ETF | Xtrackers MSCI vs. VanEck Vectors ETF | Xtrackers MSCI vs. Sonida Senior Living | Xtrackers MSCI vs. China Yuchai International |
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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