Correlation Between SPDR Barclays and BlackRock
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and BlackRock 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 Barclays and BlackRock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Barclays Intermediate and BlackRock, you can compare the effects of market volatilities on SPDR Barclays and BlackRock 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 Barclays with a short position of BlackRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and BlackRock.
Diversification Opportunities for SPDR Barclays and BlackRock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and BlackRock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Intermediate and BlackRock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock and SPDR Barclays 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 Barclays Intermediate are associated (or correlated) with BlackRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and BlackRock go up and down completely randomly.
Pair Corralation between SPDR Barclays and BlackRock
If you would invest (100.00) in BlackRock on January 26, 2024 and sell it today you would earn a total of 100.00 from holding BlackRock or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SPDR Barclays Intermediate vs. BlackRock
Performance |
| Timeline |
| SPDR Barclays Interm |
| BlackRock |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR Barclays and BlackRock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and BlackRock
The main advantage of trading using opposite SPDR Barclays and BlackRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, BlackRock 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 BlackRock will offset losses from the drop in BlackRock's long position.| SPDR Barclays vs. iShares iBoxx High | SPDR Barclays vs. iShares 1 3 Year | SPDR Barclays vs. iShares TIPS Bond | SPDR Barclays vs. iShares 7 10 Year |
| BlackRock vs. Vanguard Total Stock | BlackRock vs. SPDR SP 500 | BlackRock vs. iShares Core SP | BlackRock vs. Vanguard Total Bond |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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