Correlation Between SPDR Barclays and ProShares
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and ProShares 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 ProShares 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 ProShares SP 500, you can compare the effects of market volatilities on SPDR Barclays and ProShares 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 ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and ProShares.
Diversification Opportunities for SPDR Barclays and ProShares
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPDR and ProShares is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Intermediate and ProShares SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares SP 500 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 ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares SP 500 has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and ProShares go up and down completely randomly.
Pair Corralation between SPDR Barclays and ProShares
Given the investment horizon of 90 days SPDR Barclays Intermediate is expected to generate 0.58 times more return on investment than ProShares. However, SPDR Barclays Intermediate is 1.72 times less risky than ProShares. It trades about 0.06 of its potential returns per unit of risk. ProShares SP 500 is currently generating about 0.02 per unit of risk. If you would invest 3,114 in SPDR Barclays Intermediate on January 24, 2024 and sell it today you would earn a total of 99.00 from holding SPDR Barclays Intermediate or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Barclays Intermediate vs. ProShares SP 500
Performance |
| Timeline |
| SPDR Barclays Interm |
| ProShares SP 500 |
SPDR Barclays and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and ProShares
The main advantage of trading using opposite SPDR Barclays and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, ProShares 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 ProShares will offset losses from the drop in ProShares' long position.| SPDR Barclays vs. iShares iBonds 2026 | SPDR Barclays vs. iShares iBonds Dec | SPDR Barclays vs. iShares 25 Year |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stocks Directory Find actively traded stocks across global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |