Correlation Between Valued Advisers and SPDR Barclays
Can any of the company-specific risk be diversified away by investing in both Valued Advisers and SPDR Barclays 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 Valued Advisers and SPDR Barclays into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valued Advisers Trust and SPDR Barclays Intermediate, you can compare the effects of market volatilities on Valued Advisers and SPDR Barclays 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 Valued Advisers with a short position of SPDR Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valued Advisers and SPDR Barclays.
Diversification Opportunities for Valued Advisers and SPDR Barclays
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Valued and SPDR is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Valued Advisers Trust and SPDR Barclays Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Barclays Interm and Valued Advisers 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 Valued Advisers Trust are associated (or correlated) with SPDR Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Barclays Interm has no effect on the direction of Valued Advisers i.e., Valued Advisers and SPDR Barclays go up and down completely randomly.
Pair Corralation between Valued Advisers and SPDR Barclays
Given the investment horizon of 90 days Valued Advisers is expected to generate 2.84 times less return on investment than SPDR Barclays. But when comparing it to its historical volatility, Valued Advisers Trust is 1.14 times less risky than SPDR Barclays. It trades about 0.08 of its potential returns per unit of risk. SPDR Barclays Intermediate is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 3,257 in SPDR Barclays Intermediate on April 16, 2025 and sell it today you would earn a total of 77.00 from holding SPDR Barclays Intermediate or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.36% |
| Values | Daily Returns |
Valued Advisers Trust vs. SPDR Barclays Intermediate
Performance |
| Timeline |
| Valued Advisers Trust |
| SPDR Barclays Interm |
Valued Advisers and SPDR Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valued Advisers and SPDR Barclays
The main advantage of trading using opposite Valued Advisers and SPDR Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valued Advisers position performs unexpectedly, SPDR Barclays 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 Barclays will offset losses from the drop in SPDR Barclays' long position.| Valued Advisers vs. Columbia Diversified Fixed | Valued Advisers vs. Principal Exchange Traded Funds | Valued Advisers vs. Doubleline Etf Trust | Valued Advisers vs. Virtus Newfleet ABSMBS |
| SPDR Barclays vs. SPDR Barclays Short | SPDR Barclays vs. SPDR Bloomberg Emerging | SPDR Barclays vs. SPDR Barclays Long | SPDR Barclays vs. SPDR Barclays Short |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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