Correlation Between Aspen Technology and SPDR Portfolio
Can any of the company-specific risk be diversified away by investing in both Aspen Technology and SPDR Portfolio 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 Aspen Technology and SPDR Portfolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspen Technology and SPDR Portfolio SP, you can compare the effects of market volatilities on Aspen Technology and SPDR Portfolio 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 Aspen Technology with a short position of SPDR Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen Technology and SPDR Portfolio.
Diversification Opportunities for Aspen Technology and SPDR Portfolio
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aspen and SPDR is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Technology and SPDR Portfolio SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Portfolio SP and Aspen Technology 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 Aspen Technology are associated (or correlated) with SPDR Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Portfolio SP has no effect on the direction of Aspen Technology i.e., Aspen Technology and SPDR Portfolio go up and down completely randomly.
Pair Corralation between Aspen Technology and SPDR Portfolio
Given the investment horizon of 90 days Aspen Technology is expected to generate 1.74 times more return on investment than SPDR Portfolio. However, Aspen Technology is 1.74 times more volatile than SPDR Portfolio SP. It trades about -0.04 of its potential returns per unit of risk. SPDR Portfolio SP is currently generating about -0.17 per unit of risk. If you would invest 20,179 in Aspen Technology on January 25, 2024 and sell it today you would lose (360.00) from holding Aspen Technology or give up 1.78% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aspen Technology vs. SPDR Portfolio SP
Performance |
Timeline |
Aspen Technology |
SPDR Portfolio SP |
Aspen Technology and SPDR Portfolio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aspen Technology and SPDR Portfolio
The main advantage of trading using opposite Aspen Technology and SPDR Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen Technology position performs unexpectedly, SPDR Portfolio 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 Portfolio will offset losses from the drop in SPDR Portfolio's long position.Aspen Technology vs. Bentley SystemsInc | Aspen Technology vs. Tyler Technologies | Aspen Technology vs. Blackbaud | Aspen Technology vs. SSC Technologies Holdings |
SPDR Portfolio vs. iShares Small Cap | SPDR Portfolio vs. Pacer Cash Cows | SPDR Portfolio vs. GXO Logistics | SPDR Portfolio vs. Amplify CWP Enhanced |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
CEOs Directory Screen CEOs from public companies around the world | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
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 |