Correlation Between SPDR SP and JMIN
Can any of the company-specific risk be diversified away by investing in both SPDR SP and JMIN 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 SP and JMIN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP Dividend and JMIN, you can compare the effects of market volatilities on SPDR SP and JMIN 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 SP with a short position of JMIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and JMIN.
Diversification Opportunities for SPDR SP and JMIN
Pay attention - limited upside
The 3 months correlation between SPDR and JMIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP Dividend and JMIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JMIN and SPDR SP 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 SP Dividend are associated (or correlated) with JMIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JMIN has no effect on the direction of SPDR SP i.e., SPDR SP and JMIN go up and down completely randomly.
Pair Corralation between SPDR SP and JMIN
If you would invest 12,145 in SPDR SP Dividend on January 19, 2024 and sell it today you would earn a total of 420.00 from holding SPDR SP Dividend or generate 3.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SPDR SP Dividend vs. JMIN
Performance |
| Timeline |
| SPDR SP Dividend |
| JMIN |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR SP and JMIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and JMIN
The main advantage of trading using opposite SPDR SP and JMIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, JMIN 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 JMIN will offset losses from the drop in JMIN's long position.| SPDR SP vs. WisdomTree SmallCap Earnings | SPDR SP vs. WisdomTree Earnings 500 | SPDR SP vs. NXG NextGen Infrastructure | SPDR SP vs. WisdomTree SmallCap Dividend |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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