Correlation Between SPDR Bloomberg and VanEck Investment
Can any of the company-specific risk be diversified away by investing in both SPDR Bloomberg and VanEck Investment 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 Bloomberg and VanEck Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Bloomberg Short and VanEck Investment Grade, you can compare the effects of market volatilities on SPDR Bloomberg and VanEck Investment 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 Bloomberg with a short position of VanEck Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Bloomberg and VanEck Investment.
Diversification Opportunities for SPDR Bloomberg and VanEck Investment
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPDR and VanEck is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg Short and VanEck Investment Grade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Investment Grade and SPDR Bloomberg 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 Bloomberg Short are associated (or correlated) with VanEck Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Investment Grade has no effect on the direction of SPDR Bloomberg i.e., SPDR Bloomberg and VanEck Investment go up and down completely randomly.
Pair Corralation between SPDR Bloomberg and VanEck Investment
Given the investment horizon of 90 days SPDR Bloomberg Short is expected to generate 3.33 times more return on investment than VanEck Investment. However, SPDR Bloomberg is 3.33 times more volatile than VanEck Investment Grade. It trades about 0.2 of its potential returns per unit of risk. VanEck Investment Grade is currently generating about 0.47 per unit of risk. If you would invest 2,535 in SPDR Bloomberg Short on November 18, 2024 and sell it today you would earn a total of 18.00 from holding SPDR Bloomberg Short or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Bloomberg Short vs. VanEck Investment Grade
Performance |
| Timeline |
| SPDR Bloomberg Short |
| VanEck Investment Grade |
SPDR Bloomberg and VanEck Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Bloomberg and VanEck Investment
The main advantage of trading using opposite SPDR Bloomberg and VanEck Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Bloomberg position performs unexpectedly, VanEck Investment 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 Investment will offset losses from the drop in VanEck Investment's long position.| SPDR Bloomberg vs. PIMCO 0 5 Year | SPDR Bloomberg vs. iShares 0 5 Year | SPDR Bloomberg vs. Invesco Senior Loan | SPDR Bloomberg vs. SPDR Blackstone Senior |
| VanEck Investment vs. SPDR Bloomberg Investment | VanEck Investment vs. iShares Floating Rate | VanEck Investment vs. SPDR Barclays Long | VanEck Investment 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |