Correlation Between SPDR ICE and Global X
Can any of the company-specific risk be diversified away by investing in both SPDR ICE and Global X 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 ICE and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR ICE Preferred and Global X SuperIncome, you can compare the effects of market volatilities on SPDR ICE and Global X 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 ICE with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR ICE and Global X.
Diversification Opportunities for SPDR ICE and Global X
Very weak diversification
The 3 months correlation between SPDR and Global is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding SPDR ICE Preferred and Global X SuperIncome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X SuperIncome and SPDR ICE 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 ICE Preferred are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X SuperIncome has no effect on the direction of SPDR ICE i.e., SPDR ICE and Global X go up and down completely randomly.
Pair Corralation between SPDR ICE and Global X
Considering the 90-day investment horizon SPDR ICE Preferred is expected to under-perform the Global X. In addition to that, SPDR ICE is 1.23 times more volatile than Global X SuperIncome. It trades about -0.09 of its total potential returns per unit of risk. Global X SuperIncome is currently generating about 0.15 per unit of volatility. If you would invest 957.00 in Global X SuperIncome on August 29, 2024 and sell it today you would earn a total of 17.00 from holding Global X SuperIncome or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR ICE Preferred vs. Global X SuperIncome
Performance |
| Timeline |
| SPDR ICE Preferred |
| Global X SuperIncome |
SPDR ICE and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR ICE and Global X
The main advantage of trading using opposite SPDR ICE and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR ICE position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| SPDR ICE vs. VanEck Preferred Securities | SPDR ICE vs. Invesco Preferred ETF | SPDR ICE vs. Invesco Financial Preferred | SPDR ICE vs. Global X SuperIncome |
| Global X vs. iShares Preferred and | Global X vs. First Trust Preferred | Global X vs. Global X Preferred | Global X vs. Invesco Variable Rate |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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