Correlation Between SPDR Kensho and Xtrackers Green
Can any of the company-specific risk be diversified away by investing in both SPDR Kensho and Xtrackers Green 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 Kensho and Xtrackers Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Kensho Intelligent and Xtrackers Green Infrastructure, you can compare the effects of market volatilities on SPDR Kensho and Xtrackers Green 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 Kensho with a short position of Xtrackers Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Kensho and Xtrackers Green.
Diversification Opportunities for SPDR Kensho and Xtrackers Green
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and Xtrackers is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Kensho Intelligent and Xtrackers Green Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers Green Infr and SPDR Kensho 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 Kensho Intelligent are associated (or correlated) with Xtrackers Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers Green Infr has no effect on the direction of SPDR Kensho i.e., SPDR Kensho and Xtrackers Green go up and down completely randomly.
Pair Corralation between SPDR Kensho and Xtrackers Green
Given the investment horizon of 90 days SPDR Kensho is expected to generate 1.09 times less return on investment than Xtrackers Green. But when comparing it to its historical volatility, SPDR Kensho Intelligent is 1.36 times less risky than Xtrackers Green. It trades about 0.23 of its potential returns per unit of risk. Xtrackers Green Infrastructure is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,032 in Xtrackers Green Infrastructure on July 20, 2025 and sell it today you would earn a total of 528.00 from holding Xtrackers Green Infrastructure or generate 25.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Kensho Intelligent vs. Xtrackers Green Infrastructure
Performance |
| Timeline |
| SPDR Kensho Intelligent |
| Xtrackers Green Infr |
SPDR Kensho and Xtrackers Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Kensho and Xtrackers Green
The main advantage of trading using opposite SPDR Kensho and Xtrackers Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Kensho position performs unexpectedly, Xtrackers Green 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 Xtrackers Green will offset losses from the drop in Xtrackers Green's long position.| SPDR Kensho vs. SPDR STOXX Europe | SPDR Kensho vs. SPDR Bloomberg Barclays | SPDR Kensho vs. SPDR Kensho Future | SPDR Kensho vs. SPDR SP Kensho |
| Xtrackers Green vs. Bitwise Funds Trust | Xtrackers Green vs. Putnam Biorevolution ETF | Xtrackers Green vs. Advisors Series Trust | Xtrackers Green vs. Renaissance International IPO |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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