Correlation Between SPKY and SPKX
Can any of the company-specific risk be diversified away by investing in both SPKY and SPKX 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 SPKX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPKY and SPKX, you can compare the effects of market volatilities on SPKY and SPKX 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 SPKX. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPKY and SPKX.
Diversification Opportunities for SPKY and SPKX
No risk reduction
The 3 months correlation between SPKY and SPKX is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding SPKY and SPKX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPKX 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 SPKX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPKX has no effect on the direction of SPKY i.e., SPKY and SPKX go up and down completely randomly.
Pair Corralation between SPKY and SPKX
If you would invest 905.00 in SPKX on September 14, 2024 and sell it today you would earn a total of 0.00 from holding SPKX or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPKY vs. SPKX
Performance |
| Timeline |
| SPKY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SPKX |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPKY and SPKX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPKY and SPKX
The main advantage of trading using opposite SPKY and SPKX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPKY position performs unexpectedly, SPKX 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 SPKX will offset losses from the drop in SPKX's long position.| SPKY vs. ProShares UltraShort Yen | SPKY vs. ProShares Ultra Telecommunications | SPKY vs. ProShares Ultra Consumer | SPKY vs. ProShares Ultra Consumer |
| SPKX vs. ProShares UltraShort Yen | SPKX vs. ProShares Ultra Telecommunications | SPKX vs. ProShares Ultra Consumer | SPKX vs. ProShares Ultra Consumer |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |