Correlation Between SPDR Bloomberg and SPDR SP
Can any of the company-specific risk be diversified away by investing in both SPDR Bloomberg 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 SPDR Bloomberg and SPDR SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Bloomberg Barclays and SPDR SP Kensho, you can compare the effects of market volatilities on SPDR Bloomberg 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 SPDR Bloomberg with a short position of SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Bloomberg and SPDR SP.
Diversification Opportunities for SPDR Bloomberg and SPDR SP
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPDR and SPDR is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg Barclays 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 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 Barclays 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 SPDR Bloomberg i.e., SPDR Bloomberg and SPDR SP go up and down completely randomly.
Pair Corralation between SPDR Bloomberg and SPDR SP
Considering the 90-day investment horizon SPDR Bloomberg Barclays is expected to under-perform the SPDR SP. But the etf apears to be less risky and, when comparing its historical volatility, SPDR Bloomberg Barclays is 6.61 times less risky than SPDR SP. The etf trades about -0.11 of its potential returns per unit of risk. The SPDR SP Kensho is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,744 in SPDR SP Kensho on August 24, 2024 and sell it today you would earn a total of 22.00 from holding SPDR SP Kensho or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Bloomberg Barclays vs. SPDR SP Kensho
Performance |
| Timeline |
| SPDR Bloomberg Barclays |
| SPDR SP Kensho |
SPDR Bloomberg and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Bloomberg and SPDR SP
The main advantage of trading using opposite SPDR Bloomberg and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Bloomberg 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.| SPDR Bloomberg vs. SPDR STOXX Europe | SPDR Bloomberg vs. SPDR Kensho Future | SPDR Bloomberg vs. SPDR Kensho Intelligent | SPDR Bloomberg vs. SPDR SP Kensho |
| SPDR SP vs. SPDR STOXX Europe | SPDR SP vs. SPDR Bloomberg Barclays | SPDR SP vs. SPDR Kensho Future | SPDR SP vs. SPDR Kensho Intelligent |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |