Correlation Between IShares Global and SPDR Series
Can any of the company-specific risk be diversified away by investing in both IShares Global and SPDR Series 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 IShares Global and SPDR Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Global Timber and SPDR Series Trust, you can compare the effects of market volatilities on IShares Global and SPDR Series 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 IShares Global with a short position of SPDR Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and SPDR Series.
Diversification Opportunities for IShares Global and SPDR Series
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and SPDR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Timber and SPDR Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Series Trust and IShares Global 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 iShares Global Timber are associated (or correlated) with SPDR Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Series Trust has no effect on the direction of IShares Global i.e., IShares Global and SPDR Series go up and down completely randomly.
Pair Corralation between IShares Global and SPDR Series
If you would invest 264,400 in SPDR Series Trust on August 28, 2024 and sell it today you would earn a total of 21,600 from holding SPDR Series Trust or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Global Timber vs. SPDR Series Trust
Performance |
| Timeline |
| iShares Global Timber |
| SPDR Series Trust |
IShares Global and SPDR Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and SPDR Series
The main advantage of trading using opposite IShares Global and SPDR Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global position performs unexpectedly, SPDR Series 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 Series will offset losses from the drop in SPDR Series' long position.| IShares Global vs. The Select Sector | IShares Global vs. The Select Sector | IShares Global vs. ProShares Trust | IShares Global vs. iShares Trust |
| SPDR Series vs. SPDR Dow Jones | SPDR Series vs. SPDR Gold Trust | SPDR Series vs. SPDR SP 500 | SPDR Series vs. SPDR SP Regional |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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