Correlation Between SPDR SP and SmartETFs Smart
Can any of the company-specific risk be diversified away by investing in both SPDR SP and SmartETFs Smart 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 SmartETFs Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP Kensho and SmartETFs Smart Transportation, you can compare the effects of market volatilities on SPDR SP and SmartETFs Smart 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 SmartETFs Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and SmartETFs Smart.
Diversification Opportunities for SPDR SP and SmartETFs Smart
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and SmartETFs is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP Kensho and SmartETFs Smart Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartETFs Smart Tran 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 Kensho are associated (or correlated) with SmartETFs Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartETFs Smart Tran has no effect on the direction of SPDR SP i.e., SPDR SP and SmartETFs Smart go up and down completely randomly.
Pair Corralation between SPDR SP and SmartETFs Smart
Given the investment horizon of 90 days SPDR SP is expected to generate 1.09 times less return on investment than SmartETFs Smart. But when comparing it to its historical volatility, SPDR SP Kensho is 1.11 times less risky than SmartETFs Smart. It trades about 0.08 of its potential returns per unit of risk. SmartETFs Smart Transportation is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,210 in SmartETFs Smart Transportation on March 15, 2025 and sell it today you would earn a total of 411.16 from holding SmartETFs Smart Transportation or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SP Kensho vs. SmartETFs Smart Transportation
Performance |
| Timeline |
| SPDR SP Kensho |
| SmartETFs Smart Tran |
SPDR SP and SmartETFs Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and SmartETFs Smart
The main advantage of trading using opposite SPDR SP and SmartETFs Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, SmartETFs Smart 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 SmartETFs Smart will offset losses from the drop in SmartETFs Smart's long position.| SPDR SP vs. SPDR SP Kensho | SPDR SP vs. SPDR SP Kensho | SPDR SP vs. SPDR Kensho New | SPDR SP vs. First Trust NASDAQ |
| SmartETFs Smart vs. SPDR SP Kensho | SmartETFs Smart vs. KraneShares Electric Vehicles | SmartETFs Smart vs. iShares Self Driving EV | SmartETFs Smart vs. SPDR SP Kensho |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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