Correlation Between SPDR Russell and IShares
Can any of the company-specific risk be diversified away by investing in both SPDR Russell and IShares 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 Russell and IShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Russell 1000 and IShares, you can compare the effects of market volatilities on SPDR Russell and IShares 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 Russell with a short position of IShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Russell and IShares.
Diversification Opportunities for SPDR Russell and IShares
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPDR and IShares is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Russell 1000 and IShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares and SPDR Russell 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 Russell 1000 are associated (or correlated) with IShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares has no effect on the direction of SPDR Russell i.e., SPDR Russell and IShares go up and down completely randomly.
Pair Corralation between SPDR Russell and IShares
If you would invest 9,140 in SPDR Russell 1000 on September 3, 2024 and sell it today you would earn a total of 2,544 from holding SPDR Russell 1000 or generate 27.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.32% |
| Values | Daily Returns |
SPDR Russell 1000 vs. IShares
Performance |
| Timeline |
| SPDR Russell 1000 |
| IShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR Russell and IShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Russell and IShares
The main advantage of trading using opposite SPDR Russell and IShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Russell position performs unexpectedly, IShares 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 will offset losses from the drop in IShares' long position.| SPDR Russell vs. SPDR Russell 1000 | SPDR Russell vs. SPDR MSCI USA | SPDR Russell vs. SPDR SP 400 | SPDR Russell vs. SPDR MSCI EAFE |
| IShares vs. Vanguard Mid Cap Value | IShares vs. SPDR SP Dividend | IShares vs. SCOR PK | IShares vs. HUMANA INC |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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