Correlation Between SPDR SP and Themes Infrastructure
Can any of the company-specific risk be diversified away by investing in both SPDR SP and Themes Infrastructure 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 Themes Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP Global and Themes Infrastructure ETF, you can compare the effects of market volatilities on SPDR SP and Themes Infrastructure 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 Themes Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and Themes Infrastructure.
Diversification Opportunities for SPDR SP and Themes Infrastructure
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPDR and Themes is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP Global and Themes Infrastructure ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themes Infrastructure ETF 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 Global are associated (or correlated) with Themes Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themes Infrastructure ETF has no effect on the direction of SPDR SP i.e., SPDR SP and Themes Infrastructure go up and down completely randomly.
Pair Corralation between SPDR SP and Themes Infrastructure
Considering the 90-day investment horizon SPDR SP is expected to generate 3.23 times less return on investment than Themes Infrastructure. But when comparing it to its historical volatility, SPDR SP Global is 1.63 times less risky than Themes Infrastructure. It trades about 0.16 of its potential returns per unit of risk. Themes Infrastructure ETF is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 2,463 in Themes Infrastructure ETF on April 27, 2025 and sell it today you would earn a total of 557.00 from holding Themes Infrastructure ETF or generate 22.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SP Global vs. Themes Infrastructure ETF
Performance |
| Timeline |
| SPDR SP Global |
| Themes Infrastructure ETF |
SPDR SP and Themes Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and Themes Infrastructure
The main advantage of trading using opposite SPDR SP and Themes Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, Themes Infrastructure 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 Themes Infrastructure will offset losses from the drop in Themes Infrastructure's long position.| SPDR SP vs. iShares Dividend and | SPDR SP vs. Martin Currie Sustainable | SPDR SP vs. AdvisorShares Gerber Kawasaki | SPDR SP vs. Amplify ETF Trust |
| Themes Infrastructure vs. Amedisys | Themes Infrastructure vs. Heartland Express | Themes Infrastructure vs. Integra LifeSciences Holdings | Themes Infrastructure vs. ICU Medical |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |