Correlation Between SPDR Blackstone and SPDR Barclays
Can any of the company-specific risk be diversified away by investing in both SPDR Blackstone and SPDR Barclays 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 Blackstone and SPDR Barclays into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Blackstone Senior and SPDR Barclays Intermediate, you can compare the effects of market volatilities on SPDR Blackstone and SPDR Barclays 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 Blackstone with a short position of SPDR Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Blackstone and SPDR Barclays.
Diversification Opportunities for SPDR Blackstone and SPDR Barclays
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between SPDR and SPDR is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Blackstone Senior and SPDR Barclays Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Barclays Interm and SPDR Blackstone 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 Blackstone Senior are associated (or correlated) with SPDR Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Barclays Interm has no effect on the direction of SPDR Blackstone i.e., SPDR Blackstone and SPDR Barclays go up and down completely randomly.
Pair Corralation between SPDR Blackstone and SPDR Barclays
Given the investment horizon of 90 days SPDR Blackstone Senior is expected to generate 0.42 times more return on investment than SPDR Barclays. However, SPDR Blackstone Senior is 2.38 times less risky than SPDR Barclays. It trades about 0.31 of its potential returns per unit of risk. SPDR Barclays Intermediate is currently generating about -0.17 per unit of risk. If you would invest 4,163 in SPDR Blackstone Senior on January 25, 2024 and sell it today you would earn a total of 32.00 from holding SPDR Blackstone Senior or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Blackstone Senior vs. SPDR Barclays Intermediate
Performance |
| Timeline |
| SPDR Blackstone Senior |
| SPDR Barclays Interm |
SPDR Blackstone and SPDR Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Blackstone and SPDR Barclays
The main advantage of trading using opposite SPDR Blackstone and SPDR Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Blackstone position performs unexpectedly, SPDR Barclays 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 SPDR Barclays will offset losses from the drop in SPDR Barclays' long position.| SPDR Blackstone vs. First Trust Tactical | SPDR Blackstone vs. Invesco Variable Rate | SPDR Blackstone vs. WisdomTree Interest Rate |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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