Correlation Between SPDR Bloomberg and Virtus ETF
Can any of the company-specific risk be diversified away by investing in both SPDR Bloomberg and Virtus 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 SPDR Bloomberg and Virtus ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Bloomberg Convertible and Virtus ETF Trust, you can compare the effects of market volatilities on SPDR Bloomberg and Virtus 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 SPDR Bloomberg with a short position of Virtus ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Bloomberg and Virtus ETF.
Diversification Opportunities for SPDR Bloomberg and Virtus ETF
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and Virtus is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg Convertible and Virtus ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus ETF 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 Convertible are associated (or correlated) with Virtus ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus ETF Trust has no effect on the direction of SPDR Bloomberg i.e., SPDR Bloomberg and Virtus ETF go up and down completely randomly.
Pair Corralation between SPDR Bloomberg and Virtus ETF
Considering the 90-day investment horizon SPDR Bloomberg Convertible is expected to generate 4.68 times more return on investment than Virtus ETF. However, SPDR Bloomberg is 4.68 times more volatile than Virtus ETF Trust. It trades about 0.1 of its potential returns per unit of risk. Virtus ETF Trust is currently generating about 0.16 per unit of risk. If you would invest 7,056 in SPDR Bloomberg Convertible on April 5, 2025 and sell it today you would earn a total of 1,217 from holding SPDR Bloomberg Convertible or generate 17.25% 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 Convertible vs. Virtus ETF Trust
Performance |
| Timeline |
| SPDR Bloomberg Conve |
| Virtus ETF Trust |
SPDR Bloomberg and Virtus ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Bloomberg and Virtus ETF
The main advantage of trading using opposite SPDR Bloomberg and Virtus ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Bloomberg position performs unexpectedly, Virtus 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 Virtus ETF will offset losses from the drop in Virtus ETF's long position.| SPDR Bloomberg vs. VanEck Vectors Moodys | SPDR Bloomberg vs. Vanguard ESG Corporate | SPDR Bloomberg vs. Pacer Cash Cows | SPDR Bloomberg vs. Vanguard Intermediate Term Corporate |
| Virtus ETF vs. VanEck Vectors Moodys | Virtus ETF vs. Vanguard ESG Corporate | Virtus ETF vs. Pacer Cash Cows | Virtus ETF vs. Vanguard Intermediate Term Corporate |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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