Correlation Between SPDR Barclays and AdvisorShares
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and AdvisorShares 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 AdvisorShares 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 AdvisorShares, you can compare the effects of market volatilities on SPDR Barclays and AdvisorShares 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 AdvisorShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and AdvisorShares.
Diversification Opportunities for SPDR Barclays and AdvisorShares
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SPDR and AdvisorShares is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Short and AdvisorShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares 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 AdvisorShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and AdvisorShares go up and down completely randomly.
Pair Corralation between SPDR Barclays and AdvisorShares
If you would invest 2,901 in SPDR Barclays Short on September 1, 2024 and sell it today you would earn a total of 102.00 from holding SPDR Barclays Short or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
SPDR Barclays Short vs. AdvisorShares
Performance |
| Timeline |
| SPDR Barclays Short |
| AdvisorShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR Barclays and AdvisorShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and AdvisorShares
The main advantage of trading using opposite SPDR Barclays and AdvisorShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, AdvisorShares 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 AdvisorShares will offset losses from the drop in AdvisorShares' 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 |
| AdvisorShares vs. Vanguard Intermediate Term Corporate | AdvisorShares vs. Vanguard Short Term Bond | AdvisorShares vs. Vanguard Long Term Corporate | AdvisorShares vs. Vanguard Short Term Treasury |
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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