Correlation Between SPDR Barclays and BSCL
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and BSCL 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 Barclays and BSCL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Barclays Intermediate and BSCL, you can compare the effects of market volatilities on SPDR Barclays and BSCL 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 Barclays with a short position of BSCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and BSCL.
Diversification Opportunities for SPDR Barclays and BSCL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and BSCL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Intermediate and BSCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BSCL 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 BSCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BSCL has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and BSCL go up and down completely randomly.
Pair Corralation between SPDR Barclays and BSCL
If you would invest 3,094 in SPDR Barclays Intermediate on January 24, 2024 and sell it today you would earn a total of 119.00 from holding SPDR Barclays Intermediate or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SPDR Barclays Intermediate vs. BSCL
Performance |
| Timeline |
| SPDR Barclays Interm |
| BSCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR Barclays and BSCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and BSCL
The main advantage of trading using opposite SPDR Barclays and BSCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, BSCL 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 BSCL will offset losses from the drop in BSCL's long position.| SPDR Barclays vs. SPDR Barclays Short | SPDR Barclays vs. SPDR Bloomberg Emerging | SPDR Barclays vs. SPDR Barclays Long | SPDR Barclays vs. SPDR Barclays Short |
| BSCL vs. Vanguard Total Stock | BSCL vs. SPDR SP 500 | BSCL vs. iShares Core SP | BSCL vs. Vanguard Total Bond |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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