Correlation Between Cabana Target and SPDR Bridgewater
Can any of the company-specific risk be diversified away by investing in both Cabana Target and SPDR Bridgewater 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 Cabana Target and SPDR Bridgewater into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cabana Target Drawdown and SPDR Bridgewater All, you can compare the effects of market volatilities on Cabana Target and SPDR Bridgewater 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 Cabana Target with a short position of SPDR Bridgewater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cabana Target and SPDR Bridgewater.
Diversification Opportunities for Cabana Target and SPDR Bridgewater
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cabana and SPDR is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Cabana Target Drawdown and SPDR Bridgewater All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bridgewater All and Cabana Target 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 Cabana Target Drawdown are associated (or correlated) with SPDR Bridgewater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bridgewater All has no effect on the direction of Cabana Target i.e., Cabana Target and SPDR Bridgewater go up and down completely randomly.
Pair Corralation between Cabana Target and SPDR Bridgewater
Given the investment horizon of 90 days Cabana Target is expected to generate 1.26 times less return on investment than SPDR Bridgewater. But when comparing it to its historical volatility, Cabana Target Drawdown is 1.9 times less risky than SPDR Bridgewater. It trades about 0.41 of its potential returns per unit of risk. SPDR Bridgewater All is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,625 in SPDR Bridgewater All on July 20, 2025 and sell it today you would earn a total of 244.00 from holding SPDR Bridgewater All or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cabana Target Drawdown vs. SPDR Bridgewater All
Performance |
| Timeline |
| Cabana Target Drawdown |
| SPDR Bridgewater All |
Cabana Target and SPDR Bridgewater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cabana Target and SPDR Bridgewater
The main advantage of trading using opposite Cabana Target and SPDR Bridgewater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cabana Target position performs unexpectedly, SPDR Bridgewater 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 Bridgewater will offset losses from the drop in SPDR Bridgewater's long position.| Cabana Target vs. SGI Dynamic Tactical | Cabana Target vs. TrueShares Structured Outcome | Cabana Target vs. AIM ETF Products | Cabana Target vs. 6 Meridian Quality |
| SPDR Bridgewater vs. American Century ETF | SPDR Bridgewater vs. Franklin Liberty Systematic | SPDR Bridgewater vs. Dimensional ETF Trust | SPDR Bridgewater vs. WisdomTree International Efficient |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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