Correlation Between SPKY and Day HaganNed
Can any of the company-specific risk be diversified away by investing in both SPKY and Day HaganNed 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 Day HaganNed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPKY and Day HaganNed Davis, you can compare the effects of market volatilities on SPKY and Day HaganNed 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 Day HaganNed. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPKY and Day HaganNed.
Diversification Opportunities for SPKY and Day HaganNed
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPKY and Day is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding SPKY and Day HaganNed Davis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Day HaganNed Davis 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 Day HaganNed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Day HaganNed Davis has no effect on the direction of SPKY i.e., SPKY and Day HaganNed go up and down completely randomly.
Pair Corralation between SPKY and Day HaganNed
If you would invest 4,331 in Day HaganNed Davis on September 14, 2024 and sell it today you would earn a total of 36.00 from holding Day HaganNed Davis or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
SPKY vs. Day HaganNed Davis
Performance |
| Timeline |
| SPKY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Day HaganNed Davis |
SPKY and Day HaganNed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPKY and Day HaganNed
The main advantage of trading using opposite SPKY and Day HaganNed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPKY position performs unexpectedly, Day HaganNed 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 Day HaganNed will offset losses from the drop in Day HaganNed's long position.| SPKY vs. ProShares UltraShort Yen | SPKY vs. ProShares Ultra Telecommunications | SPKY vs. ProShares Ultra Consumer | SPKY vs. ProShares Ultra Consumer |
| Day HaganNed vs. SPDR SSGA Sector | Day HaganNed vs. Inspire International ESG | Day HaganNed vs. Overlay Shares Large | Day HaganNed vs. Timothy Plan Small |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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