Correlation Between AdvisorShares Gerber and SPDR Galaxy
Can any of the company-specific risk be diversified away by investing in both AdvisorShares Gerber and SPDR Galaxy 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 AdvisorShares Gerber and SPDR Galaxy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AdvisorShares Gerber Kawasaki and SPDR Galaxy Transformative, you can compare the effects of market volatilities on AdvisorShares Gerber and SPDR Galaxy 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 AdvisorShares Gerber with a short position of SPDR Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of AdvisorShares Gerber and SPDR Galaxy.
Diversification Opportunities for AdvisorShares Gerber and SPDR Galaxy
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AdvisorShares and SPDR is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding AdvisorShares Gerber Kawasaki and SPDR Galaxy Transformative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Galaxy Transfor and AdvisorShares Gerber 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 AdvisorShares Gerber Kawasaki are associated (or correlated) with SPDR Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Galaxy Transfor has no effect on the direction of AdvisorShares Gerber i.e., AdvisorShares Gerber and SPDR Galaxy go up and down completely randomly.
Pair Corralation between AdvisorShares Gerber and SPDR Galaxy
Allowing for the 90-day total investment horizon AdvisorShares Gerber is expected to generate 2.04 times less return on investment than SPDR Galaxy. But when comparing it to its historical volatility, AdvisorShares Gerber Kawasaki is 2.49 times less risky than SPDR Galaxy. It trades about 0.26 of its potential returns per unit of risk. SPDR Galaxy Transformative is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,651 in SPDR Galaxy Transformative on May 31, 2025 and sell it today you would earn a total of 735.50 from holding SPDR Galaxy Transformative or generate 27.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AdvisorShares Gerber Kawasaki vs. SPDR Galaxy Transformative
Performance |
| Timeline |
| AdvisorShares Gerber |
| SPDR Galaxy Transfor |
AdvisorShares Gerber and SPDR Galaxy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AdvisorShares Gerber and SPDR Galaxy
The main advantage of trading using opposite AdvisorShares Gerber and SPDR Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AdvisorShares Gerber position performs unexpectedly, SPDR Galaxy 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 SPDR Galaxy will offset losses from the drop in SPDR Galaxy's long position.| AdvisorShares Gerber vs. The Future Fund | AdvisorShares Gerber vs. Forrester Research | AdvisorShares Gerber vs. Unifirst |
| SPDR Galaxy vs. First Trust Dow | SPDR Galaxy vs. Invesco NASDAQ Internet | SPDR Galaxy vs. First Trust NASDAQ 100 | SPDR Galaxy vs. EA Series Trust |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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