Correlation Between SPDR Portfolio and Spinnaker ETF
Can any of the company-specific risk be diversified away by investing in both SPDR Portfolio and Spinnaker ETF 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 Portfolio and Spinnaker ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Portfolio Aggregate and Spinnaker ETF Series, you can compare the effects of market volatilities on SPDR Portfolio and Spinnaker ETF 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 Portfolio with a short position of Spinnaker ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Portfolio and Spinnaker ETF.
Diversification Opportunities for SPDR Portfolio and Spinnaker ETF
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and Spinnaker is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Portfolio Aggregate and Spinnaker ETF Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spinnaker ETF Series and SPDR Portfolio 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 Portfolio Aggregate are associated (or correlated) with Spinnaker ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spinnaker ETF Series has no effect on the direction of SPDR Portfolio i.e., SPDR Portfolio and Spinnaker ETF go up and down completely randomly.
Pair Corralation between SPDR Portfolio and Spinnaker ETF
Given the investment horizon of 90 days SPDR Portfolio Aggregate is expected to under-perform the Spinnaker ETF. In addition to that, SPDR Portfolio is 1.48 times more volatile than Spinnaker ETF Series. It trades about -0.05 of its total potential returns per unit of risk. Spinnaker ETF Series is currently generating about -0.03 per unit of volatility. If you would invest 1,029 in Spinnaker ETF Series on August 28, 2024 and sell it today you would lose (5.00) from holding Spinnaker ETF Series or give up 0.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Portfolio Aggregate vs. Spinnaker ETF Series
Performance |
| Timeline |
| SPDR Portfolio Aggregate |
| Spinnaker ETF Series |
SPDR Portfolio and Spinnaker ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Portfolio and Spinnaker ETF
The main advantage of trading using opposite SPDR Portfolio and Spinnaker ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Portfolio position performs unexpectedly, Spinnaker ETF 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 Spinnaker ETF will offset losses from the drop in Spinnaker ETF's long position.| SPDR Portfolio vs. SPDR SP World | SPDR Portfolio vs. SPDR Barclays Intermediate | SPDR Portfolio vs. SPDR Portfolio SP | SPDR Portfolio vs. SPDR Portfolio Emerging |
| Spinnaker ETF vs. iShares MSCI EAFE | Spinnaker ETF vs. iShares iBoxx Investment | Spinnaker ETF vs. iShares TIPS Bond | Spinnaker ETF vs. iShares 1 3 Year |
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.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |