Correlation Between Spinnaker ETF and AdvisorShares Restaurant

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

Diversification Opportunities for Spinnaker ETF and AdvisorShares Restaurant

0.1
  Correlation Coefficient

Average diversification

The 3 months correlation between Spinnaker and AdvisorShares is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Spinnaker ETF Series and AdvisorShares Restaurant ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares Restaurant and Spinnaker 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 Spinnaker ETF Series are associated (or correlated) with AdvisorShares Restaurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares Restaurant has no effect on the direction of Spinnaker ETF i.e., Spinnaker ETF and AdvisorShares Restaurant go up and down completely randomly.

Pair Corralation between Spinnaker ETF and AdvisorShares Restaurant

Given the investment horizon of 90 days Spinnaker ETF Series is expected to generate 0.55 times more return on investment than AdvisorShares Restaurant. However, Spinnaker ETF Series is 1.81 times less risky than AdvisorShares Restaurant. It trades about 0.07 of its potential returns per unit of risk. AdvisorShares Restaurant ETF is currently generating about -0.19 per unit of risk. If you would invest  1,104  in Spinnaker ETF Series on August 16, 2025 and sell it today you would earn a total of  26.00  from holding Spinnaker ETF Series or generate 2.36% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Spinnaker ETF Series  vs.  AdvisorShares Restaurant ETF

 Performance 
       Timeline  
Spinnaker ETF Series 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Spinnaker ETF Series are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Spinnaker ETF is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
AdvisorShares Restaurant 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days AdvisorShares Restaurant ETF has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the ETF investors.

Spinnaker ETF and AdvisorShares Restaurant Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Spinnaker ETF and AdvisorShares Restaurant

The main advantage of trading using opposite Spinnaker ETF and AdvisorShares Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spinnaker ETF position performs unexpectedly, AdvisorShares Restaurant 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 AdvisorShares Restaurant will offset losses from the drop in AdvisorShares Restaurant's long position.
The idea behind Spinnaker ETF Series and AdvisorShares Restaurant ETF 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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