Correlation Between SPDR Nuveen and IShares New
Can any of the company-specific risk be diversified away by investing in both SPDR Nuveen and IShares New 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 Nuveen and IShares New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Nuveen Municipal and iShares New York, you can compare the effects of market volatilities on SPDR Nuveen and IShares New 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 Nuveen with a short position of IShares New. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Nuveen and IShares New.
Diversification Opportunities for SPDR Nuveen and IShares New
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and IShares is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Nuveen Municipal and iShares New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares New York and SPDR Nuveen 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 Nuveen Municipal are associated (or correlated) with IShares New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares New York has no effect on the direction of SPDR Nuveen i.e., SPDR Nuveen and IShares New go up and down completely randomly.
Pair Corralation between SPDR Nuveen and IShares New
Given the investment horizon of 90 days SPDR Nuveen Municipal is expected to generate 0.94 times more return on investment than IShares New. However, SPDR Nuveen Municipal is 1.07 times less risky than IShares New. It trades about 0.08 of its potential returns per unit of risk. iShares New York is currently generating about 0.07 per unit of risk. If you would invest 2,758 in SPDR Nuveen Municipal on September 3, 2024 and sell it today you would earn a total of 34.00 from holding SPDR Nuveen Municipal or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Nuveen Municipal vs. iShares New York
Performance |
| Timeline |
| SPDR Nuveen Municipal |
| iShares New York |
SPDR Nuveen and IShares New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Nuveen and IShares New
The main advantage of trading using opposite SPDR Nuveen and IShares New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Nuveen position performs unexpectedly, IShares New 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 IShares New will offset losses from the drop in IShares New's long position.| SPDR Nuveen vs. Mountain Commerce Bancorp | SPDR Nuveen vs. Magyar Bancorp | SPDR Nuveen vs. Nortech Systems Incorporated |
| IShares New vs. iShares California Muni | IShares New vs. iShares Intermediate GovernmentCredit | IShares New vs. Invesco New York | IShares New vs. iShares Agency Bond |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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