This module allows you to analyze existing cross correlation between S&P 500 and SPY Inc. You can compare the effects of market volatilities on SP 500 and SPY 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 SP 500 with a short position of SPY. See also your portfolio center
. Please also check ongoing floating volatility patterns of SP 500
S&P 500 vs SPY Inc.
If you would invest 234,159 in S&P 500 on March 27, 2017 and sell it today you would earn a total of 4,700 from holding S&P 500 or generate 2.01% return on investment over 30 days.
|Time Period||1 Month [change]|
Overlapping area represents the amount of risk that can be diversified away by holding S&P 500 and SPY Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on SPY Inc and SP 500 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 S&P 500 are associated (or correlated) with SPY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPY Inc has no effect on the direction of SP 500 i.e. SP 500 and SPY go up and down completely randomly.
Over the last 30 days SPY Inc has generated negative risk-adjusted returns adding no value to investors with long positions.