Correlation Between SPDR SPASX and BetaShares Geared
Can any of the company-specific risk be diversified away by investing in both SPDR SPASX and BetaShares Geared 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 SPASX and BetaShares Geared into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SPASX 200 and BetaShares Geared Equity, you can compare the effects of market volatilities on SPDR SPASX and BetaShares Geared 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 SPASX with a short position of BetaShares Geared. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SPASX and BetaShares Geared.
Diversification Opportunities for SPDR SPASX and BetaShares Geared
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPDR and BetaShares is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SPASX 200 and BetaShares Geared Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BetaShares Geared Equity and SPDR SPASX 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 SPASX 200 are associated (or correlated) with BetaShares Geared. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BetaShares Geared Equity has no effect on the direction of SPDR SPASX i.e., SPDR SPASX and BetaShares Geared go up and down completely randomly.
Pair Corralation between SPDR SPASX and BetaShares Geared
Assuming the 90 days trading horizon SPDR SPASX 200 is expected to under-perform the BetaShares Geared. But the etf apears to be less risky and, when comparing its historical volatility, SPDR SPASX 200 is 1.51 times less risky than BetaShares Geared. The etf trades about -0.04 of its potential returns per unit of risk. The BetaShares Geared Equity is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,039 in BetaShares Geared Equity on August 25, 2024 and sell it today you would earn a total of 1,502 from holding BetaShares Geared Equity or generate 49.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SPASX 200 vs. BetaShares Geared Equity
Performance |
| Timeline |
| SPDR SPASX 200 |
| BetaShares Geared Equity |
SPDR SPASX and BetaShares Geared Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SPASX and BetaShares Geared
The main advantage of trading using opposite SPDR SPASX and BetaShares Geared positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SPASX position performs unexpectedly, BetaShares Geared 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 BetaShares Geared will offset losses from the drop in BetaShares Geared's long position.| SPDR SPASX vs. Vanguard Total Market | SPDR SPASX vs. SPDR SP 500 | SPDR SPASX vs. iShares Core SP | SPDR SPASX vs. iShares Core SP |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |