Correlation Between SPDR Series and Grupo Gigante
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By analyzing existing cross correlation between SPDR Series Trust and Grupo Gigante S, you can compare the effects of market volatilities on SPDR Series and Grupo Gigante 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 Grupo Gigante. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Series and Grupo Gigante.
Diversification Opportunities for SPDR Series and Grupo Gigante
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPDR and Grupo is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Series Trust and Grupo Gigante S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Gigante S 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 Grupo Gigante. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Gigante S has no effect on the direction of SPDR Series i.e., SPDR Series and Grupo Gigante go up and down completely randomly.
Pair Corralation between SPDR Series and Grupo Gigante
Assuming the 90 days trading horizon SPDR Series Trust is expected to generate 2.4 times more return on investment than Grupo Gigante. However, SPDR Series is 2.4 times more volatile than Grupo Gigante S. It trades about 0.33 of its potential returns per unit of risk. Grupo Gigante S is currently generating about -0.22 per unit of risk. If you would invest 264,400 in SPDR Series Trust on August 29, 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 | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SPDR Series Trust vs. Grupo Gigante S
Performance |
| Timeline |
| SPDR Series Trust |
| Grupo Gigante S |
SPDR Series and Grupo Gigante Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Series and Grupo Gigante
The main advantage of trading using opposite SPDR Series and Grupo Gigante positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Series position performs unexpectedly, Grupo Gigante 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 Grupo Gigante will offset losses from the drop in Grupo Gigante'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 |
| Grupo Gigante vs. DXC Technology | Grupo Gigante vs. Verizon Communications | Grupo Gigante vs. Ross Stores | Grupo Gigante vs. FibraHotel |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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