Correlation Between SPDR SP and DWS
Can any of the company-specific risk be diversified away by investing in both SPDR SP and DWS 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 DWS 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 DWS, you can compare the effects of market volatilities on SPDR SP and DWS 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 DWS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and DWS.
Diversification Opportunities for SPDR SP and DWS
Pay attention - limited upside
The 3 months correlation between SPDR and DWS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP 500 and DWS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DWS 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 DWS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DWS has no effect on the direction of SPDR SP i.e., SPDR SP and DWS go up and down completely randomly.
Pair Corralation between SPDR SP and DWS
If you would invest 38,736 in SPDR SP 500 on September 3, 2024 and sell it today you would earn a total of 21,627 from holding SPDR SP 500 or generate 55.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SPDR SP 500 vs. DWS
Performance |
| Timeline |
| SPDR SP 500 |
| DWS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR SP and DWS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and DWS
The main advantage of trading using opposite SPDR SP and DWS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, DWS 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 DWS will offset losses from the drop in DWS's long position.| SPDR SP vs. SPDR Gold Shares | SPDR SP vs. Vanguard Real Estate | SPDR SP vs. Vanguard Total Stock | SPDR SP vs. Vanguard FTSE Emerging |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |