Correlation Between SPDR Series and IPC MEXICO
Can any of the company-specific risk be diversified away by investing in both SPDR Series and IPC MEXICO 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 IPC MEXICO 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 IPC MEXICO, you can compare the effects of market volatilities on SPDR Series and IPC MEXICO 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 IPC MEXICO. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Series and IPC MEXICO.
Diversification Opportunities for SPDR Series and IPC MEXICO
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SPDR and IPC is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Series Trust and IPC MEXICO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IPC MEXICO 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 IPC MEXICO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IPC MEXICO has no effect on the direction of SPDR Series i.e., SPDR Series and IPC MEXICO go up and down completely randomly.
Pair Corralation between SPDR Series and IPC MEXICO
Assuming the 90 days trading horizon SPDR Series Trust is expected to generate 1.34 times more return on investment than IPC MEXICO. However, SPDR Series is 1.34 times more volatile than IPC MEXICO. It trades about 0.22 of its potential returns per unit of risk. IPC MEXICO is currently generating about -0.12 per unit of risk. If you would invest 156,743 in SPDR Series Trust on August 28, 2024 and sell it today you would earn a total of 6,407 from holding SPDR Series Trust or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
SPDR Series Trust vs. IPC MEXICO
Performance |
| Timeline |
SPDR Series and IPC MEXICO Volatility Contrast
Predicted Return Density |
| Returns |
SPDR Series Trust
Pair trading matchups for SPDR Series
IPC MEXICO
Pair trading matchups for IPC MEXICO
Pair Trading with SPDR Series and IPC MEXICO
The main advantage of trading using opposite SPDR Series and IPC MEXICO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Series position performs unexpectedly, IPC MEXICO 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 IPC MEXICO will offset losses from the drop in IPC MEXICO'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 Series Trust |
| IPC MEXICO vs. Grupo Carso SAB | IPC MEXICO vs. McEwen Mining | IPC MEXICO vs. Cognizant Technology Solutions | IPC MEXICO vs. Taiwan Semiconductor Manufacturing |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |