Correlation Between SPDR Blackstone and Listed Funds

Can any of the company-specific risk be diversified away by investing in both SPDR Blackstone and Listed Funds 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 Listed Funds 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 Listed Funds Trust, you can compare the effects of market volatilities on SPDR Blackstone and Listed Funds 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 Listed Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Blackstone and Listed Funds.

Diversification Opportunities for SPDR Blackstone and Listed Funds

0.94

Correlation Coefficient

SPDR Blackstone  Listed Funds

Almost no diversification

The 3 months correlation between SPDR and Listed is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Blackstone Senior and Listed Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Listed Funds Trust 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 Listed Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Listed Funds Trust has no effect on the direction of SPDR Blackstone i.e., SPDR Blackstone and Listed Funds go up and down completely randomly.

Pair Corralation between SPDR Blackstone and Listed Funds

Given the investment horizon of 90 days SPDR Blackstone Senior is expected to generate 1.09 times more return on investment than Listed Funds. However, SPDR Blackstone is 1.09 times more volatile than Listed Funds Trust. It trades about 0.52 of its potential returns per unit of risk. Listed Funds Trust is currently generating about 0.27 per unit of risk. If you would invest  4,156  in SPDR Blackstone Senior on February 21, 2024 and sell it today you would earn a total of  46.00  from holding SPDR Blackstone Senior or generate 1.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

SPDR Blackstone Senior  vs.  Listed Funds Trust

SPDR Blackstone Senior

Risk-Adjusted Performance

30 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Blackstone Senior are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy essential indicators, SPDR Blackstone is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Listed Funds Trust

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Listed Funds Trust are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Listed Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SPDR Blackstone and Listed Funds

The main advantage of trading using opposite SPDR Blackstone and Listed Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Blackstone position performs unexpectedly, Listed Funds 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 Listed Funds will offset losses from the drop in Listed Funds' long position.

The idea behind SPDR Blackstone Senior and Listed Funds Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.