Correlation Between SPDR SP and Vaneck Vectors
Can any of the company-specific risk be diversified away by investing in both SPDR SP and Vaneck Vectors 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 SP and Vaneck Vectors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP 500 and Vaneck Vectors Amt free, you can compare the effects of market volatilities on SPDR SP and Vaneck Vectors 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 SP with a short position of Vaneck Vectors. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and Vaneck Vectors.
Diversification Opportunities for SPDR SP and Vaneck Vectors
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPDR and Vaneck is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP 500 and Vaneck Vectors Amt free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaneck Vectors Amt and SPDR SP 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 SP 500 are associated (or correlated) with Vaneck Vectors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaneck Vectors Amt has no effect on the direction of SPDR SP i.e., SPDR SP and Vaneck Vectors go up and down completely randomly.
Pair Corralation between SPDR SP and Vaneck Vectors
If you would invest 1,145,630 in SPDR SP 500 on September 4, 2024 and sell it today you would earn a total of 86,484 from holding SPDR SP 500 or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
SPDR SP 500 vs. Vaneck Vectors Amt free
Performance |
| Timeline |
| SPDR SP 500 |
| Vaneck Vectors Amt |
SPDR SP and Vaneck Vectors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and Vaneck Vectors
The main advantage of trading using opposite SPDR SP and Vaneck Vectors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, Vaneck Vectors 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 Vaneck Vectors will offset losses from the drop in Vaneck Vectors' long position.| SPDR SP vs. Vanguard Index Funds | SPDR SP vs. Vanguard Index Funds | SPDR SP vs. Vanguard STAR Funds | SPDR SP vs. iShares Trust |
| Vaneck Vectors vs. Vanguard Index Funds | Vaneck Vectors vs. Vanguard Index Funds | Vaneck Vectors vs. Vanguard STAR Funds | Vaneck Vectors vs. SPDR SP 500 |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |