Correlation Between SPDR Barclays and SPDR Bloomberg
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and SPDR Bloomberg 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 SPDR Bloomberg 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 SPDR Bloomberg Short, you can compare the effects of market volatilities on SPDR Barclays and SPDR Bloomberg 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 SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and SPDR Bloomberg.
Diversification Opportunities for SPDR Barclays and SPDR Bloomberg
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPDR and SPDR is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Intermediate and SPDR Bloomberg Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg Short 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 SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg Short has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and SPDR Bloomberg go up and down completely randomly.
Pair Corralation between SPDR Barclays and SPDR Bloomberg
Given the investment horizon of 90 days SPDR Barclays Intermediate is expected to under-perform the SPDR Bloomberg. In addition to that, SPDR Barclays is 1.08 times more volatile than SPDR Bloomberg Short. It trades about -0.21 of its total potential returns per unit of risk. SPDR Bloomberg Short is currently generating about -0.12 per unit of volatility. If you would invest 2,504 in SPDR Bloomberg Short on January 24, 2024 and sell it today you would lose (17.00) from holding SPDR Bloomberg Short or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
SPDR Barclays Intermediate vs. SPDR Bloomberg Short
Performance |
| Timeline |
| SPDR Barclays Interm |
| SPDR Bloomberg Short |
SPDR Barclays and SPDR Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and SPDR Bloomberg
The main advantage of trading using opposite SPDR Barclays and SPDR Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, SPDR Bloomberg 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 Bloomberg will offset losses from the drop in SPDR Bloomberg's 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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