Correlation Between SPDR Portfolio and BrandywineGLOBAL
Can any of the company-specific risk be diversified away by investing in both SPDR Portfolio and BrandywineGLOBAL 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 BrandywineGLOBAL 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 BrandywineGLOBAL Fixed, you can compare the effects of market volatilities on SPDR Portfolio and BrandywineGLOBAL 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 BrandywineGLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Portfolio and BrandywineGLOBAL.
Diversification Opportunities for SPDR Portfolio and BrandywineGLOBAL
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between SPDR and BrandywineGLOBAL is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Portfolio Aggregate and BrandywineGLOBAL Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BrandywineGLOBAL Fixed 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 BrandywineGLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BrandywineGLOBAL Fixed has no effect on the direction of SPDR Portfolio i.e., SPDR Portfolio and BrandywineGLOBAL go up and down completely randomly.
Pair Corralation between SPDR Portfolio and BrandywineGLOBAL
Given the investment horizon of 90 days SPDR Portfolio is expected to generate 931.78 times less return on investment than BrandywineGLOBAL. But when comparing it to its historical volatility, SPDR Portfolio Aggregate is 284.7 times less risky than BrandywineGLOBAL. It trades about 0.04 of its potential returns per unit of risk. BrandywineGLOBAL Fixed is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1.85 in BrandywineGLOBAL Fixed on September 1, 2024 and sell it today you would earn a total of 2,481 from holding BrandywineGLOBAL Fixed or generate 134116.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 96.04% |
| Values | Daily Returns |
SPDR Portfolio Aggregate vs. BrandywineGLOBAL Fixed
Performance |
| Timeline |
| SPDR Portfolio Aggregate |
| BrandywineGLOBAL Fixed |
SPDR Portfolio and BrandywineGLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Portfolio and BrandywineGLOBAL
The main advantage of trading using opposite SPDR Portfolio and BrandywineGLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Portfolio position performs unexpectedly, BrandywineGLOBAL 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 BrandywineGLOBAL will offset losses from the drop in BrandywineGLOBAL'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 |
| BrandywineGLOBAL vs. Valued Advisers Trust | BrandywineGLOBAL vs. Columbia Diversified Fixed | BrandywineGLOBAL vs. Principal Exchange Traded Funds | BrandywineGLOBAL vs. Doubleline Etf Trust |
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.
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