Correlation Between Martin Currie and SPDR SP
Can any of the company-specific risk be diversified away by investing in both Martin Currie 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 Martin Currie and SPDR SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Currie Sustainable and SPDR SP Kensho, you can compare the effects of market volatilities on Martin Currie 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 Martin Currie with a short position of SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and SPDR SP.
Diversification Opportunities for Martin Currie and SPDR SP
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Martin and SPDR is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable 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 Martin Currie 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 Martin Currie Sustainable 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 Martin Currie i.e., Martin Currie and SPDR SP go up and down completely randomly.
Pair Corralation between Martin Currie and SPDR SP
Given the investment horizon of 90 days Martin Currie Sustainable is expected to under-perform the SPDR SP. But the etf apears to be less risky and, when comparing its historical volatility, Martin Currie Sustainable is 1.3 times less risky than SPDR SP. The etf trades about -0.22 of its potential returns per unit of risk. The SPDR SP Kensho is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,796 in SPDR SP Kensho on August 26, 2024 and sell it today you would earn a total of 20.00 from holding SPDR SP Kensho or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martin Currie Sustainable vs. SPDR SP Kensho
Performance |
| Timeline |
| Martin Currie Sustainable |
| SPDR SP Kensho |
Martin Currie and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Currie and SPDR SP
The main advantage of trading using opposite Martin Currie and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie 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.| Martin Currie vs. BrandywineGLOBAL Dynamic | Martin Currie vs. First Trust Growth | Martin Currie vs. Invesco NASDAQ Future | Martin Currie vs. Burney Factor Rotation |
| SPDR SP vs. iShares Dividend and | SPDR SP vs. Martin Currie Sustainable | SPDR SP vs. VictoryShares THB Mid | SPDR SP vs. Mast Global Battery |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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