Correlation Between Listed Funds and SPKY
Can any of the company-specific risk be diversified away by investing in both Listed Funds and SPKY 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 Listed Funds and SPKY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Listed Funds Trust and SPKY, you can compare the effects of market volatilities on Listed Funds and SPKY 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 Listed Funds with a short position of SPKY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Listed Funds and SPKY.
Diversification Opportunities for Listed Funds and SPKY
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Listed and SPKY is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Listed Funds Trust and SPKY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPKY and Listed Funds 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 Listed Funds Trust are associated (or correlated) with SPKY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPKY has no effect on the direction of Listed Funds i.e., Listed Funds and SPKY go up and down completely randomly.
Pair Corralation between Listed Funds and SPKY
If you would invest 492.00 in SPKY on October 20, 2024 and sell it today you would earn a total of 0.00 from holding SPKY or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 5.0% |
| Values | Daily Returns |
Listed Funds Trust vs. SPKY
Performance |
| Timeline |
| Listed Funds Trust |
| SPKY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Listed Funds and SPKY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Listed Funds and SPKY
The main advantage of trading using opposite Listed Funds and SPKY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Listed Funds position performs unexpectedly, SPKY 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 SPKY will offset losses from the drop in SPKY's long position.| Listed Funds vs. Teucrium Agricultural | Listed Funds vs. Teucrium Sugar | Listed Funds vs. Teucrium Soybean | Listed Funds vs. Teucrium Wheat |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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