Two Equities Correlation Analysis
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SPIB
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for SPDR Barclays and NYSE Composite
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SPDR and NYSE is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Intermediate and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and SPDR Barclays 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 Barclays Intermediate are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and NYSE Composite go up and down completely randomly.
Pair Corralation between SPDR Barclays and NYSE Composite
Given the investment horizon of 90 days SPDR Barclays is expected to generate 3.34 times less return on investment than NYSE Composite. But when comparing it to its historical volatility, SPDR Barclays Intermediate is 2.86 times less risky than NYSE Composite. It trades about 0.02 of its potential returns per unit of risk. NYSE Composite is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,574,182 in NYSE Composite on January 17, 2024 and sell it today you would earn a total of 176,511 from holding NYSE Composite or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
SPDR Barclays Intermediate vs. NYSE Composite
Performance |
| Timeline |
SPDR Barclays and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
SPDR Barclays Intermediate
Pair trading matchups for SPDR Barclays
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with SPDR Barclays and NYSE Composite
The main advantage of trading using opposite SPDR Barclays and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| SPDR Barclays vs. Fidelity Limited Term | SPDR Barclays vs. Fidelity Total Bond | SPDR Barclays vs. Fidelity High Yield | SPDR Barclays vs. Fidelity Low Volatility |
| NYSE Composite vs. Getty Images Holdings | NYSE Composite vs. Wingstop | NYSE Composite vs. Cardinal Health | NYSE Composite vs. Radcom |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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