Correlation Between SPDR SP and DOGS

Can any of the company-specific risk be diversified away by investing in both SPDR SP and DOGS 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 DOGS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SPDR SP Global and DOGS, you can compare the effects of market volatilities on SPDR SP and DOGS 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 DOGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and DOGS.

Diversification Opportunities for SPDR SP and DOGS

0.0

Correlation Coefficient

SPDR SP  DOGS

Pay attention - limited upside

The 3 months correlation between SPDR and DOGS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP Global and DOGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOGS 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 Global are associated (or correlated) with DOGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOGS has no effect on the direction of SPDR SP i.e., SPDR SP and DOGS go up and down completely randomly.

Pair Corralation between SPDR SP and DOGS

If you would invest  5,988  in SPDR SP Global on March 4, 2024 and sell it today you would earn a total of  130.00  from holding SPDR SP Global or generate 2.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SPDR SP Global  vs.  DOGS

SPDR SP Global

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR SP Global are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable forward indicators, SPDR SP is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

DOGS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DOGS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, DOGS is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with SPDR SP and DOGS

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

The idea behind SPDR SP Global and DOGS 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.