Correlation Between Promotora and SPDR Series
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By analyzing existing cross correlation between Promotora y Operadora and SPDR Series Trust, you can compare the effects of market volatilities on Promotora and SPDR Series 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 Promotora with a short position of SPDR Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Promotora and SPDR Series.
Diversification Opportunities for Promotora and SPDR Series
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Promotora and SPDR is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Promotora y Operadora and SPDR Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Series Trust and Promotora 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 Promotora y Operadora are associated (or correlated) with SPDR Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Series Trust has no effect on the direction of Promotora i.e., Promotora and SPDR Series go up and down completely randomly.
Pair Corralation between Promotora and SPDR Series
Assuming the 90 days trading horizon Promotora is expected to generate 1.48 times less return on investment than SPDR Series. But when comparing it to its historical volatility, Promotora y Operadora is 1.18 times less risky than SPDR Series. It trades about 0.26 of its potential returns per unit of risk. SPDR Series Trust is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 264,400 in SPDR Series Trust on August 29, 2024 and sell it today you would earn a total of 36,700 from holding SPDR Series Trust or generate 13.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Promotora y Operadora vs. SPDR Series Trust
Performance |
| Timeline |
| Promotora y Operadora |
| SPDR Series Trust |
Promotora and SPDR Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Promotora and SPDR Series
The main advantage of trading using opposite Promotora and SPDR Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Promotora position performs unexpectedly, SPDR Series 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 Series will offset losses from the drop in SPDR Series' long position.| Promotora vs. Fluor | Promotora vs. Promotora y Operadora | Promotora vs. The Select Sector | Promotora vs. SPDR Series Trust |
| SPDR Series vs. SPDR Dow Jones | SPDR Series vs. SPDR Gold Trust | SPDR Series vs. SPDR SP 500 | SPDR Series vs. SPDR SP Regional |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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