Correlation Between SPDR FTSE and SPDR Blackstone
Can any of the company-specific risk be diversified away by investing in both SPDR FTSE and SPDR Blackstone 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 FTSE and SPDR Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR FTSE International and SPDR Blackstone Senior, you can compare the effects of market volatilities on SPDR FTSE and SPDR Blackstone 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 FTSE with a short position of SPDR Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR FTSE and SPDR Blackstone.
Diversification Opportunities for SPDR FTSE and SPDR Blackstone
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and SPDR is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding SPDR FTSE International and SPDR Blackstone Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Blackstone Senior and SPDR FTSE 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 FTSE International are associated (or correlated) with SPDR Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Blackstone Senior has no effect on the direction of SPDR FTSE i.e., SPDR FTSE and SPDR Blackstone go up and down completely randomly.
Pair Corralation between SPDR FTSE and SPDR Blackstone
Considering the 90-day investment horizon SPDR FTSE International is expected to under-perform the SPDR Blackstone. In addition to that, SPDR FTSE is 4.79 times more volatile than SPDR Blackstone Senior. It trades about -0.01 of its total potential returns per unit of risk. SPDR Blackstone Senior is currently generating about 0.28 per unit of volatility. If you would invest 3,845 in SPDR Blackstone Senior on September 4, 2024 and sell it today you would earn a total of 341.00 from holding SPDR Blackstone Senior or generate 8.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
SPDR FTSE International vs. SPDR Blackstone Senior
Performance |
| Timeline |
| SPDR FTSE International |
| SPDR Blackstone Senior |
SPDR FTSE and SPDR Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR FTSE and SPDR Blackstone
The main advantage of trading using opposite SPDR FTSE and SPDR Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR FTSE position performs unexpectedly, SPDR Blackstone 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 SPDR Blackstone will offset losses from the drop in SPDR Blackstone's long position.| SPDR FTSE vs. SPDR Bloomberg Emerging | SPDR FTSE vs. Vanguard Emerging Markets | SPDR FTSE vs. SPDR Bloomberg Barclays | SPDR FTSE vs. VanEck JP Morgan |
| SPDR Blackstone vs. Invesco Senior Loan | SPDR Blackstone vs. First Trust Senior | SPDR Blackstone vs. SPDR Bloomberg Short | SPDR Blackstone vs. SPDR Bloomberg Investment |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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