Correlation Between 2023 ETF and Spinnaker ETF

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Can any of the company-specific risk be diversified away by investing in both 2023 ETF and Spinnaker ETF 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 2023 ETF and Spinnaker ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The 2023 ETF and Spinnaker ETF Series, you can compare the effects of market volatilities on 2023 ETF and Spinnaker ETF 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 2023 ETF with a short position of Spinnaker ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of 2023 ETF and Spinnaker ETF.

Diversification Opportunities for 2023 ETF and Spinnaker ETF

-0.3
  Correlation Coefficient

Very good diversification

The 3 months correlation between 2023 and Spinnaker is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding The 2023 ETF and Spinnaker ETF Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spinnaker ETF Series and 2023 ETF 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 The 2023 ETF are associated (or correlated) with Spinnaker ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spinnaker ETF Series has no effect on the direction of 2023 ETF i.e., 2023 ETF and Spinnaker ETF go up and down completely randomly.

Pair Corralation between 2023 ETF and Spinnaker ETF

Given the investment horizon of 90 days The 2023 ETF is expected to generate 1.09 times more return on investment than Spinnaker ETF. However, 2023 ETF is 1.09 times more volatile than Spinnaker ETF Series. It trades about -0.06 of its potential returns per unit of risk. Spinnaker ETF Series is currently generating about -0.08 per unit of risk. If you would invest  3,051  in The 2023 ETF on August 29, 2025 and sell it today you would lose (36.00) from holding The 2023 ETF or give up 1.18% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

The 2023 ETF  vs.  Spinnaker ETF Series

 Performance 
       Timeline  
2023 ETF 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in The 2023 ETF are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical indicators, 2023 ETF may actually be approaching a critical reversion point that can send shares even higher in December 2025.
Spinnaker ETF Series 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Spinnaker ETF Series has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, Spinnaker ETF is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

2023 ETF and Spinnaker ETF Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with 2023 ETF and Spinnaker ETF

The main advantage of trading using opposite 2023 ETF and Spinnaker ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 2023 ETF position performs unexpectedly, Spinnaker ETF 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 Spinnaker ETF will offset losses from the drop in Spinnaker ETF's long position.
The idea behind The 2023 ETF and Spinnaker ETF Series 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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