Correlation Between SPDR Kensho and AdvisorShares Pure
Can any of the company-specific risk be diversified away by investing in both SPDR Kensho and AdvisorShares Pure 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 Kensho and AdvisorShares Pure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Kensho New and AdvisorShares Pure Cannabis, you can compare the effects of market volatilities on SPDR Kensho and AdvisorShares Pure 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 Kensho with a short position of AdvisorShares Pure. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Kensho and AdvisorShares Pure.
Diversification Opportunities for SPDR Kensho and AdvisorShares Pure
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SPDR and AdvisorShares is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Kensho New and AdvisorShares Pure Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares Pure and SPDR Kensho 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 Kensho New are associated (or correlated) with AdvisorShares Pure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares Pure has no effect on the direction of SPDR Kensho i.e., SPDR Kensho and AdvisorShares Pure go up and down completely randomly.
Pair Corralation between SPDR Kensho and AdvisorShares Pure
Given the investment horizon of 90 days SPDR Kensho New is expected to generate 0.17 times more return on investment than AdvisorShares Pure. However, SPDR Kensho New is 5.94 times less risky than AdvisorShares Pure. It trades about 0.2 of its potential returns per unit of risk. AdvisorShares Pure Cannabis is currently generating about -0.19 per unit of risk. If you would invest 5,038 in SPDR Kensho New on August 29, 2024 and sell it today you would earn a total of 339.00 from holding SPDR Kensho New or generate 6.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SPDR Kensho New vs. AdvisorShares Pure Cannabis
Performance |
Timeline |
SPDR Kensho New |
AdvisorShares Pure |
SPDR Kensho and AdvisorShares Pure Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SPDR Kensho and AdvisorShares Pure
The main advantage of trading using opposite SPDR Kensho and AdvisorShares Pure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Kensho position performs unexpectedly, AdvisorShares Pure 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 AdvisorShares Pure will offset losses from the drop in AdvisorShares Pure's long position.SPDR Kensho vs. SPDR Kensho Clean | SPDR Kensho vs. SPDR SP Kensho | SPDR Kensho vs. SPDR SP Kensho | SPDR Kensho vs. SPDR SP Kensho |
AdvisorShares Pure vs. AdvisorShares Pure Cannabis | AdvisorShares Pure vs. Trulieve Cannabis Corp | AdvisorShares Pure vs. Green Thumb Industries | AdvisorShares Pure vs. Amplify Seymour Cannabis |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |