Correlation Between SPDR Barclays and VanEck Crypto
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and VanEck Crypto 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 Barclays and VanEck Crypto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Barclays 10 and VanEck Crypto Blockchain, you can compare the effects of market volatilities on SPDR Barclays and VanEck Crypto 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 Barclays with a short position of VanEck Crypto. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and VanEck Crypto.
Diversification Opportunities for SPDR Barclays and VanEck Crypto
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and VanEck is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays 10 and VanEck Crypto Blockchain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Crypto Blockchain and SPDR Barclays 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 Barclays 10 are associated (or correlated) with VanEck Crypto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Crypto Blockchain has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and VanEck Crypto go up and down completely randomly.
Pair Corralation between SPDR Barclays and VanEck Crypto
Assuming the 90 days trading horizon SPDR Barclays is expected to generate 24.83 times less return on investment than VanEck Crypto. But when comparing it to its historical volatility, SPDR Barclays 10 is 6.71 times less risky than VanEck Crypto. It trades about 0.09 of its potential returns per unit of risk. VanEck Crypto Blockchain is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 925.00 in VanEck Crypto Blockchain on September 1, 2024 and sell it today you would earn a total of 399.00 from holding VanEck Crypto Blockchain or generate 43.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SPDR Barclays 10 vs. VanEck Crypto Blockchain
Performance |
| Timeline |
| SPDR Barclays 10 |
| VanEck Crypto Blockchain |
SPDR Barclays and VanEck Crypto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and VanEck Crypto
The main advantage of trading using opposite SPDR Barclays and VanEck Crypto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, VanEck Crypto 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 Crypto will offset losses from the drop in VanEck Crypto's long position.| SPDR Barclays vs. SPDR Dow Jones | SPDR Barclays vs. SPDR SP Dividend | SPDR Barclays vs. SPDR Barclays Euro | SPDR Barclays vs. SPDR SP Consumer |
| VanEck Crypto vs. Vanguard FTSE Developed | VanEck Crypto vs. Leverage Shares 2x | VanEck Crypto vs. Amundi Index Solutions | VanEck Crypto vs. Amundi Index Solutions |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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