Correlation Between SPDR Series and IShares Global
Can any of the company-specific risk be diversified away by investing in both SPDR Series and IShares Global 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 Series and IShares Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Series Trust and iShares Global Timber, you can compare the effects of market volatilities on SPDR Series and IShares Global 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 IShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Series and IShares Global.
Diversification Opportunities for SPDR Series and IShares Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Series Trust and iShares Global Timber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Global Timber 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 IShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Global Timber has no effect on the direction of SPDR Series i.e., SPDR Series and IShares Global go up and down completely randomly.
Pair Corralation between SPDR Series and IShares Global
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 |
SPDR Series Trust vs. iShares Global Timber
Performance |
| Timeline |
| SPDR Series Trust |
| iShares Global Timber |
SPDR Series and IShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Series and IShares Global
The main advantage of trading using opposite SPDR Series and IShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Series position performs unexpectedly, IShares Global 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 IShares Global will offset losses from the drop in IShares Global'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 |
| IShares Global vs. The Select Sector | IShares Global vs. The Select Sector | IShares Global vs. ProShares Trust | IShares Global vs. iShares 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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