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Correlation Between SPDR SP and SPDR Select

Analyzing existing cross correlation between SPDR SP Insurance ETF and SPDR Select Sector Fund Finan. You can compare the effects of market volatilities on SPDR SP and SPDR Select 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 SPDR Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and SPDR Select.

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Diversification Opportunities for SPDR SP and SPDR Select

SPDR SP Insurance ETF diversification synergy
0.68
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SPD

Poor diversification

The 3 months correlation between SPDR SP and SPDR Select is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP Insurance ETF and SPDR Select Sector Fund Finan in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on SPDR Select Sector 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 Insurance ETF are associated (or correlated) with SPDR Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Select Sector has no effect on the direction of SPDR SP i.e. SPDR SP and SPDR Select go up and down completely randomly.

Pair Corralation between SPDR SP and SPDR Select

Considering 30-days investment horizon, SPDR SP Insurance ETF is expected to generate 0.99 times more return on investment than SPDR Select. However, SPDR SP Insurance ETF is 1.01 times less risky than SPDR Select. It trades about -0.13 of its potential returns per unit of risk. SPDR Select Sector Fund Finan is currently generating about -0.16 per unit of risk. If you would invest  3,515  in SPDR SP Insurance ETF on January 30, 2020 and sell it today you would lose (340.00)  from holding SPDR SP Insurance ETF or give up 9.67% of portfolio value over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy98.41%
ValuesDaily Returns

SPDR SP Insurance ETF  vs.  SPDR Select Sector Fund Finan

 Performance (%) 
    
  Timeline 
SPDR SP Insurance 
00

Risk-Adjusted Performance

Over the last 30 days SPDR SP Insurance ETF has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Etf's fundamental drivers remain sound and the ongoing tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.
SPDR Select Sector 
00

Risk-Adjusted Performance

Over the last 30 days SPDR Select Sector Fund Finan has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Etf's fundamental drivers remain sound and the ongoing tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.

SPDR SP and SPDR Select Volatility Contrast

 Predicted Return Density 
    
  Returns 
Check out your portfolio center. Please also try Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.