Correlation Between SPDR SP and Northern Lights
Can any of the company-specific risk be diversified away by investing in both SPDR SP and Northern Lights 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 SP and Northern Lights into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP MIDCAP and Northern Lights, you can compare the effects of market volatilities on SPDR SP and Northern Lights 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 SP with a short position of Northern Lights. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and Northern Lights.
Diversification Opportunities for SPDR SP and Northern Lights
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and Northern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP MIDCAP and Northern Lights in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Lights and SPDR SP 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 SP MIDCAP are associated (or correlated) with Northern Lights. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Lights has no effect on the direction of SPDR SP i.e., SPDR SP and Northern Lights go up and down completely randomly.
Pair Corralation between SPDR SP and Northern Lights
If you would invest 57,223 in SPDR SP MIDCAP on November 8, 2024 and sell it today you would earn a total of 2,053 from holding SPDR SP MIDCAP or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SPDR SP MIDCAP vs. Northern Lights
Performance |
| Timeline |
| SPDR SP MIDCAP |
| Northern Lights |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR SP and Northern Lights Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and Northern Lights
The main advantage of trading using opposite SPDR SP and Northern Lights positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, Northern Lights 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 Northern Lights will offset losses from the drop in Northern Lights' long position.| SPDR SP vs. iShares Core SP | SPDR SP vs. iShares Russell 2000 | SPDR SP vs. iShares MSCI EAFE | SPDR SP vs. iShares Russell 2000 |
| Northern Lights vs. Inspire Tactical Balanced | Northern Lights vs. Inspire SmallMid Cap | Northern Lights vs. Inspire Faithward Mid | Northern Lights vs. Northern Lights |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |