Correlation Between SPDR SP and XWEB
Can any of the company-specific risk be diversified away by investing in both SPDR SP and XWEB 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 SP and XWEB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP Health and XWEB, you can compare the effects of market volatilities on SPDR SP and XWEB 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 SP with a short position of XWEB. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and XWEB.
Diversification Opportunities for SPDR SP and XWEB
Pay attention - limited upside
The 3 months correlation between SPDR and XWEB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP Health and XWEB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XWEB and SPDR SP 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 SP Health are associated (or correlated) with XWEB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XWEB has no effect on the direction of SPDR SP i.e., SPDR SP and XWEB go up and down completely randomly.
Pair Corralation between SPDR SP and XWEB
If you would invest 8,800 in SPDR SP Health on August 30, 2024 and sell it today you would earn a total of 578.00 from holding SPDR SP Health or generate 6.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
SPDR SP Health vs. XWEB
Performance |
| Timeline |
| SPDR SP Health |
| XWEB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR SP and XWEB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and XWEB
The main advantage of trading using opposite SPDR SP and XWEB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, XWEB 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 XWEB will offset losses from the drop in XWEB's long position.| SPDR SP vs. SPDR SP Health | SPDR SP vs. SPDR SP Software | SPDR SP vs. Invesco SP SmallCap | SPDR SP vs. SPDR SP Pharmaceuticals |
| XWEB vs. SPDR FactSet Innovative | XWEB vs. SPDR SP Software | XWEB vs. SPDR Morgan Stanley | XWEB vs. SPDR SP Health |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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