Correlation Between SPKY and ETC 6
Can any of the company-specific risk be diversified away by investing in both SPKY and ETC 6 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 SPKY and ETC 6 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPKY and ETC 6 Meridian, you can compare the effects of market volatilities on SPKY and ETC 6 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 SPKY with a short position of ETC 6. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPKY and ETC 6.
Diversification Opportunities for SPKY and ETC 6
Pay attention - limited upside
The 3 months correlation between SPKY and ETC is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding SPKY and ETC 6 Meridian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETC 6 Meridian and SPKY 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 SPKY are associated (or correlated) with ETC 6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETC 6 Meridian has no effect on the direction of SPKY i.e., SPKY and ETC 6 go up and down completely randomly.
Pair Corralation between SPKY and ETC 6
If you would invest 492.00 in SPKY on September 14, 2024 and sell it today you would earn a total of 0.00 from holding SPKY or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
SPKY vs. ETC 6 Meridian
Performance |
| Timeline |
| SPKY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ETC 6 Meridian |
SPKY and ETC 6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPKY and ETC 6
The main advantage of trading using opposite SPKY and ETC 6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPKY position performs unexpectedly, ETC 6 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 ETC 6 will offset losses from the drop in ETC 6's long position.| SPKY vs. ProShares UltraShort Yen | SPKY vs. ProShares Ultra Telecommunications | SPKY vs. ProShares Ultra Consumer | SPKY vs. ProShares Ultra Consumer |
| ETC 6 vs. Global X SP | ETC 6 vs. Amplify CWP Enhanced | ETC 6 vs. JPMorgan Nasdaq Equity | ETC 6 vs. NEOS 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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