Correlation Between SPDR Barclays and Aptus Defined
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and Aptus Defined 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 Aptus Defined into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Barclays Short and Aptus Defined Risk, you can compare the effects of market volatilities on SPDR Barclays and Aptus Defined 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 Aptus Defined. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and Aptus Defined.
Diversification Opportunities for SPDR Barclays and Aptus Defined
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPDR and Aptus is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Short and Aptus Defined Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptus Defined Risk 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 Short are associated (or correlated) with Aptus Defined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptus Defined Risk has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and Aptus Defined go up and down completely randomly.
Pair Corralation between SPDR Barclays and Aptus Defined
Given the investment horizon of 90 days SPDR Barclays Short is not expected to generate positive returns. However, SPDR Barclays Short is 6.45 times less risky than Aptus Defined. It waists most of its returns potential to compensate for thr risk taken. Aptus Defined is generating about -0.08 per unit of risk. If you would invest 2,991 in SPDR Barclays Short on August 27, 2024 and sell it today you would earn a total of 0.00 from holding SPDR Barclays Short or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Barclays Short vs. Aptus Defined Risk
Performance |
| Timeline |
| SPDR Barclays Short |
| Aptus Defined Risk |
SPDR Barclays and Aptus Defined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and Aptus Defined
The main advantage of trading using opposite SPDR Barclays and Aptus Defined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, Aptus Defined 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 Aptus Defined will offset losses from the drop in Aptus Defined's long position.| SPDR Barclays vs. SPDR Barclays Intermediate | SPDR Barclays vs. Western Asset Short | SPDR Barclays vs. SPDR Barclays Short | SPDR Barclays vs. iShares 1 5 Year |
| Aptus Defined vs. Dimensional ETF Trust | Aptus Defined vs. Dimensional ETF Trust | Aptus Defined vs. Dimensional Core Equity | Aptus Defined vs. Dimensional 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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