Correlation Between SPDR SP and Alger ETF
Can any of the company-specific risk be diversified away by investing in both SPDR SP and Alger 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 Alger ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP Aerospace and The Alger ETF, you can compare the effects of market volatilities on SPDR SP and Alger 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 Alger ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and Alger ETF.
Diversification Opportunities for SPDR SP and Alger ETF
Poor diversification
The 3 months correlation between SPDR and Alger is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP Aerospace and The Alger ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger ETF 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 Aerospace are associated (or correlated) with Alger ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger ETF has no effect on the direction of SPDR SP i.e., SPDR SP and Alger ETF go up and down completely randomly.
Pair Corralation between SPDR SP and Alger ETF
Considering the 90-day investment horizon SPDR SP Aerospace is expected to generate 1.21 times more return on investment than Alger ETF. However, SPDR SP is 1.21 times more volatile than The Alger ETF. It trades about 0.11 of its potential returns per unit of risk. The Alger ETF is currently generating about 0.03 per unit of risk. If you would invest 23,882 in SPDR SP Aerospace on October 10, 2025 and sell it today you would earn a total of 2,731 from holding SPDR SP Aerospace or generate 11.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SP Aerospace vs. The Alger ETF
Performance |
| Timeline |
| SPDR SP Aerospace |
| Alger ETF |
SPDR SP and Alger ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and Alger ETF
The main advantage of trading using opposite SPDR SP and Alger ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, Alger 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 Alger ETF will offset losses from the drop in Alger ETF's long position.| SPDR SP vs. Fidelity Covington Trust | SPDR SP vs. BNY Mellon Large | SPDR SP vs. Vanguard SP Mid Cap | SPDR SP vs. Invesco SP MidCap |
| Alger ETF vs. Innovator Loup Frontier | Alger ETF vs. Level Four Large | Alger ETF vs. Northern Lights | Alger ETF vs. Amplify AI Powered |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets |