Correlation Between SPDR SP and Martin Currie
Can any of the company-specific risk be diversified away by investing in both SPDR SP and Martin Currie 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 Martin Currie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP Oil and Martin Currie Sustainable, you can compare the effects of market volatilities on SPDR SP and Martin Currie 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 Martin Currie. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and Martin Currie.
Diversification Opportunities for SPDR SP and Martin Currie
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SPDR and Martin is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP Oil and Martin Currie Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Currie Sustainable 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 Oil are associated (or correlated) with Martin Currie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Currie Sustainable has no effect on the direction of SPDR SP i.e., SPDR SP and Martin Currie go up and down completely randomly.
Pair Corralation between SPDR SP and Martin Currie
Considering the 90-day investment horizon SPDR SP Oil is expected to under-perform the Martin Currie. In addition to that, SPDR SP is 2.12 times more volatile than Martin Currie Sustainable. It trades about -0.31 of its total potential returns per unit of risk. Martin Currie Sustainable is currently generating about 0.28 per unit of volatility. If you would invest 1,327 in Martin Currie Sustainable on September 19, 2024 and sell it today you would earn a total of 48.50 from holding Martin Currie Sustainable or generate 3.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SP Oil vs. Martin Currie Sustainable
Performance |
| Timeline |
| SPDR SP Oil |
| Martin Currie Sustainable |
SPDR SP and Martin Currie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and Martin Currie
The main advantage of trading using opposite SPDR SP and Martin Currie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, Martin Currie 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 Martin Currie will offset losses from the drop in Martin Currie's long position.| SPDR SP vs. VanEck Oil Services | SPDR SP vs. SPDR SP Metals | SPDR SP vs. Energy Select Sector | SPDR SP vs. SPDR SP Retail |
| Martin Currie vs. WisdomTree International Quality | Martin Currie vs. WisdomTree Europe Hedged | Martin Currie vs. iShares Currency Hedged | Martin Currie vs. WisdomTree Europe Quality |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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