Correlation Between SPDR Barclays and Fm 10
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and Fm 10 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 Barclays and Fm 10 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Barclays Long and Fm 10 Year Investment, you can compare the effects of market volatilities on SPDR Barclays and Fm 10 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 Barclays with a short position of Fm 10. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and Fm 10.
Diversification Opportunities for SPDR Barclays and Fm 10
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPDR and ZTEN is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Long and Fm 10 Year Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fm 10 Year and SPDR Barclays 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 Barclays Long are associated (or correlated) with Fm 10. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fm 10 Year has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and Fm 10 go up and down completely randomly.
Pair Corralation between SPDR Barclays and Fm 10
Given the investment horizon of 90 days SPDR Barclays Long is expected to under-perform the Fm 10. In addition to that, SPDR Barclays is 1.44 times more volatile than Fm 10 Year Investment. It trades about -0.01 of its total potential returns per unit of risk. Fm 10 Year Investment is currently generating about -0.01 per unit of volatility. If you would invest 4,945 in Fm 10 Year Investment on October 23, 2024 and sell it today you would lose (5.00) from holding Fm 10 Year Investment or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Barclays Long vs. Fm 10 Year Investment
Performance |
| Timeline |
| SPDR Barclays Long |
| Fm 10 Year |
SPDR Barclays and Fm 10 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and Fm 10
The main advantage of trading using opposite SPDR Barclays and Fm 10 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, Fm 10 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 Fm 10 will offset losses from the drop in Fm 10's long position.| SPDR Barclays vs. iShares 10 Year | SPDR Barclays vs. SPDR Barclays Intermediate | SPDR Barclays vs. SPDR Barclays Short | SPDR Barclays vs. FlexShares Credit Scored Long |
| Fm 10 vs. VanEck Vectors Moodys | Fm 10 vs. Valued Advisers Trust | Fm 10 vs. Xtrackers California Municipal | Fm 10 vs. Principal Exchange Traded Funds |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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