Correlation Between SPDR Portfolio and Avantis Emerging
Can any of the company-specific risk be diversified away by investing in both SPDR Portfolio and Avantis Emerging 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 Portfolio and Avantis Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Portfolio Emerging and Avantis Emerging Markets, you can compare the effects of market volatilities on SPDR Portfolio and Avantis Emerging 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 Portfolio with a short position of Avantis Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Portfolio and Avantis Emerging.
Diversification Opportunities for SPDR Portfolio and Avantis Emerging
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and Avantis is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Portfolio Emerging and Avantis Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avantis Emerging Markets and SPDR Portfolio 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 Portfolio Emerging are associated (or correlated) with Avantis Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avantis Emerging Markets has no effect on the direction of SPDR Portfolio i.e., SPDR Portfolio and Avantis Emerging go up and down completely randomly.
Pair Corralation between SPDR Portfolio and Avantis Emerging
Given the investment horizon of 90 days SPDR Portfolio Emerging is expected to generate 1.02 times more return on investment than Avantis Emerging. However, SPDR Portfolio is 1.02 times more volatile than Avantis Emerging Markets. It trades about 0.14 of its potential returns per unit of risk. Avantis Emerging Markets is currently generating about 0.13 per unit of risk. If you would invest 4,374 in SPDR Portfolio Emerging on July 20, 2025 and sell it today you would earn a total of 331.00 from holding SPDR Portfolio Emerging or generate 7.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Portfolio Emerging vs. Avantis Emerging Markets
Performance |
| Timeline |
| SPDR Portfolio Emerging |
| Avantis Emerging Markets |
SPDR Portfolio and Avantis Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Portfolio and Avantis Emerging
The main advantage of trading using opposite SPDR Portfolio and Avantis Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Portfolio position performs unexpectedly, Avantis Emerging 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 Avantis Emerging will offset losses from the drop in Avantis Emerging's long position.| SPDR Portfolio vs. SPDR Russell Small | SPDR Portfolio vs. JPMorgan BetaBuilders Japan | SPDR Portfolio vs. Avantis Emerging Markets | SPDR Portfolio vs. Vanguard Financials Index |
| Avantis Emerging vs. Alpha Architect International | Avantis Emerging vs. iShares Self Driving EV | Avantis Emerging vs. First Trust Dorsey | Avantis Emerging vs. WisdomTree Europe SmallCap |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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