Correlation Between SPDR Bloomberg and VanEck International
Can any of the company-specific risk be diversified away by investing in both SPDR Bloomberg and VanEck International 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 VanEck International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Bloomberg High and VanEck International High, you can compare the effects of market volatilities on SPDR Bloomberg and VanEck International 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 VanEck International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Bloomberg and VanEck International.
Diversification Opportunities for SPDR Bloomberg and VanEck International
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between SPDR and VanEck is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg High and VanEck International High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck International High 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 High are associated (or correlated) with VanEck International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck International High has no effect on the direction of SPDR Bloomberg i.e., SPDR Bloomberg and VanEck International go up and down completely randomly.
Pair Corralation between SPDR Bloomberg and VanEck International
Considering the 90-day investment horizon SPDR Bloomberg High is expected to generate 0.97 times more return on investment than VanEck International. However, SPDR Bloomberg High is 1.03 times less risky than VanEck International. It trades about 0.09 of its potential returns per unit of risk. VanEck International High is currently generating about 0.08 per unit of risk. If you would invest 8,079 in SPDR Bloomberg High on September 5, 2024 and sell it today you would earn a total of 1,602 from holding SPDR Bloomberg High or generate 19.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Bloomberg High vs. VanEck International High
Performance |
| Timeline |
| SPDR Bloomberg High |
| VanEck International High |
SPDR Bloomberg and VanEck International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Bloomberg and VanEck International
The main advantage of trading using opposite SPDR Bloomberg and VanEck International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Bloomberg position performs unexpectedly, VanEck International 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 VanEck International will offset losses from the drop in VanEck International's long position.| SPDR Bloomberg vs. iShares iBoxx High | SPDR Bloomberg vs. iShares iBoxx Investment | SPDR Bloomberg vs. iShares JP Morgan | SPDR Bloomberg vs. iShares TIPS Bond |
| VanEck International vs. iShares iBoxx Investment | VanEck International vs. SPDR Bloomberg High | VanEck International vs. iShares TIPS Bond | VanEck International vs. iShares 20 Year |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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