Correlation Between XWEB and SPDR SP
Can any of the company-specific risk be diversified away by investing in both XWEB and SPDR SP 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 XWEB and SPDR SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XWEB and SPDR SP Transportation, you can compare the effects of market volatilities on XWEB and SPDR SP 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 XWEB with a short position of SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of XWEB and SPDR SP.
Diversification Opportunities for XWEB and SPDR SP
Pay attention - limited upside
The 3 months correlation between XWEB and SPDR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding XWEB and SPDR SP Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Transportation and XWEB 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 XWEB are associated (or correlated) with SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP Transportation has no effect on the direction of XWEB i.e., XWEB and SPDR SP go up and down completely randomly.
Pair Corralation between XWEB and SPDR SP
If you would invest 7,625 in SPDR SP Transportation on June 1, 2025 and sell it today you would earn a total of 988.00 from holding SPDR SP Transportation or generate 12.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
XWEB vs. SPDR SP Transportation
Performance |
| Timeline |
| XWEB |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| SPDR SP Transportation |
XWEB and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XWEB and SPDR SP
The main advantage of trading using opposite XWEB and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XWEB position performs unexpectedly, SPDR SP 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 SP will offset losses from the drop in SPDR SP's long position.| XWEB vs. First Trust Dow | XWEB vs. Invesco NASDAQ Internet | XWEB vs. First Trust NASDAQ 100 | XWEB vs. EA Series Trust |
| SPDR SP vs. Ultimus Managers Trust | SPDR SP vs. American Beacon Select | SPDR SP vs. First Trust Indxx | SPDR SP vs. Direxion Daily Regional |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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