Correlation Between SPDR Portfolio and IQ Winslow
Can any of the company-specific risk be diversified away by investing in both SPDR Portfolio and IQ Winslow 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 Portfolio and IQ Winslow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Portfolio SP and IQ Winslow Focused, you can compare the effects of market volatilities on SPDR Portfolio and IQ Winslow 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 Portfolio with a short position of IQ Winslow. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Portfolio and IQ Winslow.
Diversification Opportunities for SPDR Portfolio and IQ Winslow
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between SPDR and IWFG is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Portfolio SP and IQ Winslow Focused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQ Winslow Focused and SPDR Portfolio 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 Portfolio SP are associated (or correlated) with IQ Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQ Winslow Focused has no effect on the direction of SPDR Portfolio i.e., SPDR Portfolio and IQ Winslow go up and down completely randomly.
Pair Corralation between SPDR Portfolio and IQ Winslow
Given the investment horizon of 90 days SPDR Portfolio SP is expected to generate 0.94 times more return on investment than IQ Winslow. However, SPDR Portfolio SP is 1.06 times less risky than IQ Winslow. It trades about 0.11 of its potential returns per unit of risk. IQ Winslow Focused is currently generating about 0.1 per unit of risk. If you would invest 7,519 in SPDR Portfolio SP on September 1, 2024 and sell it today you would earn a total of 1,217 from holding SPDR Portfolio SP or generate 16.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
SPDR Portfolio SP vs. IQ Winslow Focused
Performance |
| Timeline |
| SPDR Portfolio SP |
| IQ Winslow Focused |
SPDR Portfolio and IQ Winslow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Portfolio and IQ Winslow
The main advantage of trading using opposite SPDR Portfolio and IQ Winslow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Portfolio position performs unexpectedly, IQ Winslow 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 IQ Winslow will offset losses from the drop in IQ Winslow's long position.| SPDR Portfolio vs. FT Vest Equity | SPDR Portfolio vs. Northern Lights | SPDR Portfolio vs. Dimensional International High | SPDR Portfolio vs. Matthews China Discovery |
| IQ Winslow vs. FT Vest Equity | IQ Winslow vs. Northern Lights | IQ Winslow vs. Dimensional International High | IQ Winslow vs. Matthews China Discovery |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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