Correlation Between SPDR SP and Dimensional ETF
Can any of the company-specific risk be diversified away by investing in both SPDR SP and Dimensional ETF 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 Dimensional ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP 500 and Dimensional ETF Trust, you can compare the effects of market volatilities on SPDR SP and Dimensional ETF 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 Dimensional ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and Dimensional ETF.
Diversification Opportunities for SPDR SP and Dimensional ETF
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and Dimensional is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP 500 and Dimensional ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimensional ETF Trust 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 500 are associated (or correlated) with Dimensional ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimensional ETF Trust has no effect on the direction of SPDR SP i.e., SPDR SP and Dimensional ETF go up and down completely randomly.
Pair Corralation between SPDR SP and Dimensional ETF
If you would invest 62,630 in SPDR SP 500 on July 17, 2025 and sell it today you would earn a total of 3,593 from holding SPDR SP 500 or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SPDR SP 500 vs. Dimensional ETF Trust
Performance |
| Timeline |
| SPDR SP 500 |
| Dimensional ETF Trust |
Risk-Adjusted Performance
Weakest
Weak | Strong |
SPDR SP and Dimensional ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and Dimensional ETF
The main advantage of trading using opposite SPDR SP and Dimensional ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, Dimensional ETF 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 Dimensional ETF will offset losses from the drop in Dimensional ETF's long position.| SPDR SP vs. Vanguard Dividend Appreciation | SPDR SP vs. Vanguard Large Cap Index | SPDR SP vs. Invesco SP 500 | SPDR SP vs. iShares Russell 1000 |
| Dimensional ETF vs. Dimensional International Core | Dimensional ETF vs. Dimensional Core Equity | Dimensional ETF vs. Dimensional ETF Trust | Dimensional ETF vs. Dimensional ETF 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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