Correlation Between SPDR Portfolio and SPDR SP
Can any of the company-specific risk be diversified away by investing in both SPDR Portfolio and SPDR SP 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 Portfolio and SPDR SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Portfolio MSCI and SPDR SP Global, you can compare the effects of market volatilities on SPDR Portfolio and SPDR SP 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 Portfolio with a short position of SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Portfolio and SPDR SP.
Diversification Opportunities for SPDR Portfolio and SPDR SP
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPDR and SPDR is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Portfolio MSCI and SPDR SP Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Global and SPDR Portfolio 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 Portfolio MSCI are associated (or correlated) with SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP Global has no effect on the direction of SPDR Portfolio i.e., SPDR Portfolio and SPDR SP go up and down completely randomly.
Pair Corralation between SPDR Portfolio and SPDR SP
Given the investment horizon of 90 days SPDR Portfolio MSCI is expected to generate 1.15 times more return on investment than SPDR SP. However, SPDR Portfolio is 1.15 times more volatile than SPDR SP Global. It trades about 0.03 of its potential returns per unit of risk. SPDR SP Global is currently generating about 0.0 per unit of risk. If you would invest 4,985 in SPDR Portfolio MSCI on January 24, 2024 and sell it today you would earn a total of 738.00 from holding SPDR Portfolio MSCI or generate 14.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
SPDR Portfolio MSCI vs. SPDR SP Global
Performance |
| Timeline |
| SPDR Portfolio MSCI |
| SPDR SP Global |
SPDR Portfolio and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Portfolio and SPDR SP
The main advantage of trading using opposite SPDR Portfolio and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Portfolio position performs unexpectedly, SPDR SP 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 SP will offset losses from the drop in SPDR SP's long position.| SPDR Portfolio vs. VanEck Morningstar International | SPDR Portfolio vs. VanEck ETF Trust | SPDR Portfolio vs. AGFiQ Global Infrastructure | SPDR Portfolio vs. VanEck ETF Trust |
| SPDR SP vs. SPDR SP Emerging | SPDR SP vs. First Trust Dow | SPDR SP vs. iShares AsiaPacific Dividend | SPDR SP vs. iShares Emerging Markets |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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