Correlation Between Spinnaker ETF and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Spinnaker ETF and Dow Jones 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 Spinnaker ETF and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spinnaker ETF Series and Dow Jones Industrial, you can compare the effects of market volatilities on Spinnaker ETF and Dow Jones 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 Spinnaker ETF with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spinnaker ETF and Dow Jones.
Diversification Opportunities for Spinnaker ETF and Dow Jones
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spinnaker and Dow is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Spinnaker ETF Series and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Spinnaker ETF 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 Spinnaker ETF Series are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Spinnaker ETF i.e., Spinnaker ETF and Dow Jones go up and down completely randomly.
Pair Corralation between Spinnaker ETF and Dow Jones
Given the investment horizon of 90 days Spinnaker ETF Series is expected to generate 108.12 times more return on investment than Dow Jones. However, Spinnaker ETF is 108.12 times more volatile than Dow Jones Industrial. It trades about 0.08 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 0.00 in Spinnaker ETF Series on August 30, 2024 and sell it today you would earn a total of 1,012 from holding Spinnaker ETF Series or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 32.93% |
| Values | Daily Returns |
Spinnaker ETF Series vs. Dow Jones Industrial
Performance |
| Timeline |
Spinnaker ETF and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Spinnaker ETF Series
Pair trading matchups for Spinnaker ETF
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Spinnaker ETF and Dow Jones
The main advantage of trading using opposite Spinnaker ETF and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spinnaker ETF position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Spinnaker ETF vs. Valued Advisers Trust | Spinnaker ETF vs. Columbia Diversified Fixed | Spinnaker ETF vs. Principal Exchange Traded Funds | Spinnaker ETF vs. Doubleline Etf Trust |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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