Correlation Between SPDR SP and Meet Kevin

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

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

Diversification Opportunities for SPDR SP and Meet Kevin

0.2

Correlation Coefficient

SPDR SP  Meet Kevin

Modest diversification

The 3 months correlation between SPDR and Meet is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP Retail and The Meet Kevin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meet Kevin 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 Retail are associated (or correlated) with Meet Kevin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meet Kevin has no effect on the direction of SPDR SP i.e., SPDR SP and Meet Kevin go up and down completely randomly.

Pair Corralation between SPDR SP and Meet Kevin

Considering the 90-day investment horizon SPDR SP Retail is expected to under-perform the Meet Kevin. But the etf apears to be less risky and, when comparing its historical volatility, SPDR SP Retail is 1.04 times less risky than Meet Kevin. The etf trades about -0.2 of its potential returns per unit of risk. The The Meet Kevin is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  2,596  in The Meet Kevin on December 18, 2024 and sell it today you would earn a total of  14.00  from holding The Meet Kevin or generate 0.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	83.05%
Values	Daily Returns

SPDR SP Retail  vs.  The Meet Kevin

SPDR SP Retail

Risk-Adjusted Performance

Very Weak

Over the last 90 days SPDR SP Retail has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.

Meet Kevin

Risk-Adjusted Performance

Weak

Over the last 90 days The Meet Kevin has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Meet Kevin is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with SPDR SP and Meet Kevin

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

The idea behind SPDR SP Retail and The Meet Kevin 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.