Correlation Between SPDR Bloomberg and Quaker Investment

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

Diversification Opportunities for SPDR Bloomberg and Quaker Investment

0.99

Correlation Coefficient

SPDR Bloomberg  Quaker Investment

No risk reduction

The 3 months correlation between SPDR and Quaker is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg Barclays and Quaker Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaker Investment Trust 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 Quaker Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quaker Investment Trust has no effect on the direction of SPDR Bloomberg i.e., SPDR Bloomberg and Quaker Investment go up and down completely randomly.

Pair Corralation between SPDR Bloomberg and Quaker Investment

Considering the 90-day investment horizon SPDR Bloomberg Barclays is expected to generate 0.82 times more return on investment than Quaker Investment. However, SPDR Bloomberg Barclays is 1.22 times less risky than Quaker Investment. It trades about 0.15 of its potential returns per unit of risk. Quaker Investment Trust is currently generating about 0.11 per unit of risk. If you would invest  2,773  in SPDR Bloomberg Barclays on December 28, 2024 and sell it today you would earn a total of  63.00  from holding SPDR Bloomberg Barclays or generate 2.27% return on investment over 90 days.

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

SPDR Bloomberg Barclays  vs.  Quaker Investment Trust

SPDR Bloomberg Barclays

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Bloomberg Barclays are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, SPDR Bloomberg is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Quaker Investment Trust

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Quaker Investment Trust are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Quaker Investment is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with SPDR Bloomberg and Quaker Investment

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

The idea behind SPDR Bloomberg Barclays and Quaker Investment 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.