Correlation Between Exchange Traded and SPDR Portfolio
Can any of the company-specific risk be diversified away by investing in both Exchange Traded and SPDR Portfolio 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 Exchange Traded and SPDR Portfolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exchange Traded Concepts and SPDR Portfolio Aggregate, you can compare the effects of market volatilities on Exchange Traded and SPDR Portfolio 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 Exchange Traded with a short position of SPDR Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exchange Traded and SPDR Portfolio.
Diversification Opportunities for Exchange Traded and SPDR Portfolio
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Exchange and SPDR is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Exchange Traded Concepts and SPDR Portfolio Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Portfolio Aggregate and Exchange Traded 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 Exchange Traded Concepts are associated (or correlated) with SPDR Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Portfolio Aggregate has no effect on the direction of Exchange Traded i.e., Exchange Traded and SPDR Portfolio go up and down completely randomly.
Pair Corralation between Exchange Traded and SPDR Portfolio
If you would invest 2,515 in SPDR Portfolio Aggregate on September 13, 2024 and sell it today you would earn a total of 38.00 from holding SPDR Portfolio Aggregate or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Exchange Traded Concepts vs. SPDR Portfolio Aggregate
Performance |
| Timeline |
| Exchange Traded Concepts |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SPDR Portfolio Aggregate |
Exchange Traded and SPDR Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exchange Traded and SPDR Portfolio
The main advantage of trading using opposite Exchange Traded and SPDR Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exchange Traded position performs unexpectedly, SPDR Portfolio 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 Portfolio will offset losses from the drop in SPDR Portfolio's long position.| Exchange Traded vs. SPDR Portfolio Aggregate | Exchange Traded vs. WBI Power Factor | Exchange Traded vs. Global X MSCI | Exchange Traded vs. HUMANA INC |
| SPDR Portfolio vs. SPDR SP World | SPDR Portfolio vs. SPDR Barclays Intermediate | SPDR Portfolio vs. SPDR Portfolio SP | SPDR Portfolio vs. SPDR Portfolio Emerging |
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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