Correlation Between SPDR SPASX and VanEck Vectors
Can any of the company-specific risk be diversified away by investing in both SPDR SPASX and VanEck Vectors 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 VanEck Vectors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SPASX 50 and VanEck Vectors MSCI, you can compare the effects of market volatilities on SPDR SPASX and VanEck Vectors 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 VanEck Vectors. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SPASX and VanEck Vectors.
Diversification Opportunities for SPDR SPASX and VanEck Vectors
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPDR and VanEck is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SPASX 50 and VanEck Vectors MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Vectors MSCI 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 50 are associated (or correlated) with VanEck Vectors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Vectors MSCI has no effect on the direction of SPDR SPASX i.e., SPDR SPASX and VanEck Vectors go up and down completely randomly.
Pair Corralation between SPDR SPASX and VanEck Vectors
Assuming the 90 days trading horizon SPDR SPASX 50 is expected to generate 0.79 times more return on investment than VanEck Vectors. However, SPDR SPASX 50 is 1.27 times less risky than VanEck Vectors. It trades about 0.11 of its potential returns per unit of risk. VanEck Vectors MSCI is currently generating about 0.07 per unit of risk. If you would invest 6,774 in SPDR SPASX 50 on September 1, 2024 and sell it today you would earn a total of 721.00 from holding SPDR SPASX 50 or generate 10.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SPASX 50 vs. VanEck Vectors MSCI
Performance |
| Timeline |
| SPDR SPASX 50 |
| VanEck Vectors MSCI |
SPDR SPASX and VanEck Vectors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SPASX and VanEck Vectors
The main advantage of trading using opposite SPDR SPASX and VanEck Vectors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SPASX position performs unexpectedly, VanEck Vectors 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 VanEck Vectors will offset losses from the drop in VanEck Vectors' long position.| SPDR SPASX vs. BetaShares Global Government | SPDR SPASX vs. BetaShares Geared Australian | SPDR SPASX vs. BetaShares Australian Government | SPDR SPASX vs. BetaShares Global Robotics |
| VanEck Vectors vs. BetaShares Global Banks | VanEck Vectors vs. Beta Shares SPASX | VanEck Vectors vs. SPDR SPASX 200 | VanEck Vectors vs. Vanguard Australian Property |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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