Correlation Between Quaker Investment and SPDR Portfolio
Can any of the company-specific risk be diversified away by investing in both Quaker Investment 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 Quaker Investment and SPDR Portfolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quaker Investment Trust and SPDR Portfolio Intermediate, you can compare the effects of market volatilities on Quaker Investment 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 Quaker Investment with a short position of SPDR Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quaker Investment and SPDR Portfolio.
Diversification Opportunities for Quaker Investment and SPDR Portfolio
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Quaker and SPDR is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Quaker Investment Trust and SPDR Portfolio Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Portfolio Inter and Quaker Investment 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 Quaker Investment Trust 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 Inter has no effect on the direction of Quaker Investment i.e., Quaker Investment and SPDR Portfolio go up and down completely randomly.
Pair Corralation between Quaker Investment and SPDR Portfolio
Given the investment horizon of 90 days Quaker Investment Trust is expected to generate 1.14 times more return on investment than SPDR Portfolio. However, Quaker Investment is 1.14 times more volatile than SPDR Portfolio Intermediate. It trades about 0.1 of its potential returns per unit of risk. SPDR Portfolio Intermediate is currently generating about 0.09 per unit of risk. If you would invest 1,636 in Quaker Investment Trust on August 24, 2024 and sell it today you would earn a total of 70.00 from holding Quaker Investment Trust or generate 4.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quaker Investment Trust vs. SPDR Portfolio Intermediate
Performance |
| Timeline |
| Quaker Investment Trust |
| SPDR Portfolio Inter |
Quaker Investment and SPDR Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quaker Investment and SPDR Portfolio
The main advantage of trading using opposite Quaker Investment and SPDR Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quaker Investment 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.| Quaker Investment vs. Listed Funds Trust | Quaker Investment vs. ClearShares Piton Intermediate | Quaker Investment vs. John Hancock Exchange Traded | Quaker Investment vs. SSGA Active Trust |
| SPDR Portfolio vs. SPDR Barclays Short | SPDR Portfolio vs. SPDR Barclays Long | SPDR Portfolio vs. SPDR Portfolio Mortgage | SPDR Portfolio vs. SPDR Barclays Intermediate |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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