Correlation Between SPDR SP and Jacob Forward
Can any of the company-specific risk be diversified away by investing in both SPDR SP and Jacob Forward 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 SP and Jacob Forward into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP 600 and Jacob Forward ETF, you can compare the effects of market volatilities on SPDR SP and Jacob Forward 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 SP with a short position of Jacob Forward. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and Jacob Forward.
Diversification Opportunities for SPDR SP and Jacob Forward
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPDR and Jacob is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP 600 and Jacob Forward ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Forward ETF and SPDR SP 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 SP 600 are associated (or correlated) with Jacob Forward. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Forward ETF has no effect on the direction of SPDR SP i.e., SPDR SP and Jacob Forward go up and down completely randomly.
Pair Corralation between SPDR SP and Jacob Forward
Given the investment horizon of 90 days SPDR SP is expected to generate 1.89 times less return on investment than Jacob Forward. But when comparing it to its historical volatility, SPDR SP 600 is 1.41 times less risky than Jacob Forward. It trades about 0.25 of its potential returns per unit of risk. Jacob Forward ETF is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,051 in Jacob Forward ETF on August 26, 2024 and sell it today you would earn a total of 186.00 from holding Jacob Forward ETF or generate 17.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SP 600 vs. Jacob Forward ETF
Performance |
| Timeline |
| SPDR SP 600 |
| Jacob Forward ETF |
SPDR SP and Jacob Forward Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and Jacob Forward
The main advantage of trading using opposite SPDR SP and Jacob Forward positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, Jacob Forward 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 Jacob Forward will offset losses from the drop in Jacob Forward's long position.| SPDR SP vs. SPDR SP 600 | SPDR SP vs. SPDR SP 400 | SPDR SP vs. SPDR SP 400 | SPDR SP vs. Invesco SP SmallCap |
| Jacob Forward vs. Amplify Thematic All Stars | Jacob Forward vs. Jacob Micro Cap | Jacob Forward vs. Main Thematic Innovation |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |