Correlation Between SPDR Portfolio and Astoria Quality
Can any of the company-specific risk be diversified away by investing in both SPDR Portfolio and Astoria Quality 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 Astoria Quality 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 Astoria Quality Kings, you can compare the effects of market volatilities on SPDR Portfolio and Astoria Quality 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 Astoria Quality. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Portfolio and Astoria Quality.
Diversification Opportunities for SPDR Portfolio and Astoria Quality
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and Astoria is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Portfolio SP and Astoria Quality Kings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astoria Quality Kings 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 Astoria Quality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astoria Quality Kings has no effect on the direction of SPDR Portfolio i.e., SPDR Portfolio and Astoria Quality go up and down completely randomly.
Pair Corralation between SPDR Portfolio and Astoria Quality
Given the investment horizon of 90 days SPDR Portfolio is expected to generate 1.17 times less return on investment than Astoria Quality. But when comparing it to its historical volatility, SPDR Portfolio SP is 1.13 times less risky than Astoria Quality. It trades about 0.08 of its potential returns per unit of risk. Astoria Quality Kings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,051 in Astoria Quality Kings on August 23, 2024 and sell it today you would earn a total of 74.00 from holding Astoria Quality Kings or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Portfolio SP vs. Astoria Quality Kings
Performance |
| Timeline |
| SPDR Portfolio SP |
| Astoria Quality Kings |
SPDR Portfolio and Astoria Quality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Portfolio and Astoria Quality
The main advantage of trading using opposite SPDR Portfolio and Astoria Quality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Portfolio position performs unexpectedly, Astoria Quality 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 Astoria Quality will offset losses from the drop in Astoria Quality's long position.| SPDR Portfolio vs. SPDR Portfolio SP | SPDR Portfolio vs. SPDR Portfolio SP | SPDR Portfolio vs. SPDR Portfolio SP | SPDR Portfolio vs. SPDR SP 600 |
| Astoria Quality vs. Invesco Actively Managed | Astoria Quality vs. iShares Trust | Astoria Quality vs. EMCS | Astoria Quality vs. iShares MSCI 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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