Correlation Between SPDR Bloomberg and Return Stacked

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

By analyzing existing cross correlation between SPDR Bloomberg Barclays and Return Stacked Bonds, you can compare the effects of market volatilities on SPDR Bloomberg and Return Stacked 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 Bloomberg with a short position of Return Stacked. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Bloomberg and Return Stacked.

Diversification Opportunities for SPDR Bloomberg and Return Stacked

0.48

Correlation Coefficient

SPDR Bloomberg  Return Stacked

Very weak diversification

The 3 months correlation between SPDR and Return is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg Barclays and Return Stacked Bonds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Return Stacked Bonds and SPDR Bloomberg 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 Bloomberg Barclays are associated (or correlated) with Return Stacked. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Return Stacked Bonds has no effect on the direction of SPDR Bloomberg i.e., SPDR Bloomberg and Return Stacked go up and down completely randomly.

Pair Corralation between SPDR Bloomberg and Return Stacked

If you would invest  2,370  in SPDR Bloomberg Barclays on October 20, 2024 and sell it today you would earn a total of  30.00  from holding SPDR Bloomberg Barclays or generate 1.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	0.0%
Values	Daily Returns

SPDR Bloomberg Barclays  vs.  Return Stacked Bonds

SPDR Bloomberg Barclays

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SPDR Bloomberg Barclays has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, SPDR Bloomberg is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Return Stacked Bonds

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Return Stacked Bonds has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental drivers, Return Stacked 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 Bloomberg and Return Stacked

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

The idea behind SPDR Bloomberg Barclays and Return Stacked Bonds 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.