Correlation Between SPDR Global and EA Series
Can any of the company-specific risk be diversified away by investing in both SPDR Global and EA Series 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 Global and EA Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Global Dow and EA Series Trust, you can compare the effects of market volatilities on SPDR Global and EA Series 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 Global with a short position of EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Global and EA Series.
Diversification Opportunities for SPDR Global and EA Series
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and CCMG is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Global Dow and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust and SPDR Global 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 Global Dow are associated (or correlated) with EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of SPDR Global i.e., SPDR Global and EA Series go up and down completely randomly.
Pair Corralation between SPDR Global and EA Series
Considering the 90-day investment horizon SPDR Global Dow is expected to generate 1.09 times more return on investment than EA Series. However, SPDR Global is 1.09 times more volatile than EA Series Trust. It trades about 0.14 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.05 per unit of risk. If you would invest 13,361 in SPDR Global Dow on December 26, 2024 and sell it today you would earn a total of 919.00 from holding SPDR Global Dow or generate 6.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.36% |
Values | Daily Returns |
SPDR Global Dow vs. EA Series Trust
Performance |
Timeline |
SPDR Global Dow |
EA Series Trust |
SPDR Global and EA Series Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SPDR Global and EA Series
The main advantage of trading using opposite SPDR Global and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Global position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' long position.SPDR Global vs. iShares Global 100 | SPDR Global vs. iShares MSCI Belgium | SPDR Global vs. iShares MSCI Netherlands | SPDR Global vs. iShares Dow Jones |
EA Series vs. Strategy Shares | EA Series vs. Freedom Day Dividend | EA Series vs. Franklin Templeton ETF | EA Series vs. iShares MSCI China |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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