Correlation Between SPDR Series and Fibra Shop
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By analyzing existing cross correlation between SPDR Series Trust and Fibra Shop, you can compare the effects of market volatilities on SPDR Series and Fibra Shop 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 Series with a short position of Fibra Shop. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Series and Fibra Shop.
Diversification Opportunities for SPDR Series and Fibra Shop
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPDR and Fibra is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Series Trust and Fibra Shop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibra Shop and SPDR Series 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 Series Trust are associated (or correlated) with Fibra Shop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fibra Shop has no effect on the direction of SPDR Series i.e., SPDR Series and Fibra Shop go up and down completely randomly.
Pair Corralation between SPDR Series and Fibra Shop
Assuming the 90 days trading horizon SPDR Series Trust is expected to generate 1.85 times more return on investment than Fibra Shop. However, SPDR Series is 1.85 times more volatile than Fibra Shop. It trades about 0.33 of its potential returns per unit of risk. Fibra Shop is currently generating about -0.09 per unit of risk. If you would invest 264,400 in SPDR Series Trust on August 30, 2024 and sell it today you would earn a total of 36,700 from holding SPDR Series Trust or generate 13.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
SPDR Series Trust vs. Fibra Shop
Performance |
| Timeline |
| SPDR Series Trust |
| Fibra Shop |
SPDR Series and Fibra Shop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Series and Fibra Shop
The main advantage of trading using opposite SPDR Series and Fibra Shop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Series position performs unexpectedly, Fibra Shop 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 Fibra Shop will offset losses from the drop in Fibra Shop's long position.| SPDR Series vs. SPDR Dow Jones | SPDR Series vs. SPDR Gold Trust | SPDR Series vs. SPDR SP 500 | SPDR Series vs. SPDR SP Regional |
| Fibra Shop vs. UnitedHealth Group Incorporated | Fibra Shop vs. Lockheed Martin | Fibra Shop vs. The Select Sector | Fibra Shop vs. SPDR Series Trust |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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