Correlation Between SPDR Blackstone and VanEck Investment
Can any of the company-specific risk be diversified away by investing in both SPDR Blackstone and VanEck Investment 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 Blackstone and VanEck Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Blackstone Senior and VanEck Investment Grade, you can compare the effects of market volatilities on SPDR Blackstone and VanEck Investment 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 Blackstone with a short position of VanEck Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Blackstone and VanEck Investment.
Diversification Opportunities for SPDR Blackstone and VanEck Investment
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and VanEck is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Blackstone Senior and VanEck Investment Grade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Investment Grade and SPDR Blackstone 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 Blackstone Senior are associated (or correlated) with VanEck Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Investment Grade has no effect on the direction of SPDR Blackstone i.e., SPDR Blackstone and VanEck Investment go up and down completely randomly.
Pair Corralation between SPDR Blackstone and VanEck Investment
Given the investment horizon of 90 days SPDR Blackstone Senior is expected to generate 2.31 times more return on investment than VanEck Investment. However, SPDR Blackstone is 2.31 times more volatile than VanEck Investment Grade. It trades about 0.34 of its potential returns per unit of risk. VanEck Investment Grade is currently generating about 0.48 per unit of risk. If you would invest 4,159 in SPDR Blackstone Senior on August 24, 2024 and sell it today you would earn a total of 40.00 from holding SPDR Blackstone Senior or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Blackstone Senior vs. VanEck Investment Grade
Performance |
| Timeline |
| SPDR Blackstone Senior |
| VanEck Investment Grade |
SPDR Blackstone and VanEck Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Blackstone and VanEck Investment
The main advantage of trading using opposite SPDR Blackstone and VanEck Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Blackstone position performs unexpectedly, VanEck Investment 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 Investment will offset losses from the drop in VanEck Investment's long position.| SPDR Blackstone vs. First Trust Senior | SPDR Blackstone vs. SPDR Bloomberg Short | SPDR Blackstone vs. SPDR Bloomberg Investment | SPDR Blackstone vs. iShares Floating Rate |
| VanEck Investment vs. SPDR Bloomberg 1 3 | VanEck Investment vs. iShares Ultra Short Term | VanEck Investment vs. First Trust Enhanced | VanEck Investment vs. iShares 0 3 Month |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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