Correlation Between SPDR SP and Return Stacked
Can any of the company-specific risk be diversified away by investing in both SPDR SP and Return Stacked 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 Return Stacked 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 Return Stacked Bonds, you can compare the effects of market volatilities on SPDR SP and Return Stacked 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 Return Stacked. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and Return Stacked.
Diversification Opportunities for SPDR SP and Return Stacked
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and Return is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP 500 and Return Stacked Bonds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Return Stacked Bonds 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 Return Stacked. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Return Stacked Bonds has no effect on the direction of SPDR SP i.e., SPDR SP and Return Stacked go up and down completely randomly.
Pair Corralation between SPDR SP and Return Stacked
Considering the 90-day investment horizon SPDR SP 500 is expected to generate 1.32 times more return on investment than Return Stacked. However, SPDR SP is 1.32 times more volatile than Return Stacked Bonds. It trades about 0.38 of its potential returns per unit of risk. Return Stacked Bonds is currently generating about 0.18 per unit of risk. If you would invest 56,981 in SPDR SP 500 on September 5, 2024 and sell it today you would earn a total of 3,410 from holding SPDR SP 500 or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SPDR SP 500 vs. Return Stacked Bonds
Performance |
| Timeline |
| SPDR SP 500 |
| Return Stacked Bonds |
SPDR SP and Return Stacked Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and Return Stacked
The main advantage of trading using opposite SPDR SP and Return Stacked positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, Return Stacked 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 Return Stacked will offset losses from the drop in Return Stacked'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 |
| Return Stacked vs. First Trust Multi Asset | Return Stacked vs. Collaborative Investment Series | Return Stacked vs. EA Series Trust | Return Stacked vs. Ocean Park International |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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