Correlation Between BetaPro SPTSX and IShares SPTSX

Can any of the company-specific risk be diversified away by investing in both BetaPro SPTSX and IShares SPTSX 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 BetaPro SPTSX and IShares SPTSX into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BetaPro SPTSX Capped and iShares SPTSX Completion, you can compare the effects of market volatilities on BetaPro SPTSX and IShares SPTSX 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 BetaPro SPTSX with a short position of IShares SPTSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro SPTSX and IShares SPTSX.

Diversification Opportunities for BetaPro SPTSX and IShares SPTSX

-0.88

Correlation Coefficient

BetaPro SPTSX  IShares SPTSX

Pay attention - limited upside

The 3 months correlation between BetaPro and IShares is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro SPTSX Capped and iShares SPTSX Completion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SPTSX Completion and BetaPro SPTSX 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 BetaPro SPTSX Capped are associated (or correlated) with IShares SPTSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SPTSX Completion has no effect on the direction of BetaPro SPTSX i.e., BetaPro SPTSX and IShares SPTSX go up and down completely randomly.

Pair Corralation between BetaPro SPTSX and IShares SPTSX

Assuming the 90 days trading horizon BetaPro SPTSX Capped is expected to under-perform the IShares SPTSX. In addition to that, BetaPro SPTSX is 5.17 times more volatile than iShares SPTSX Completion. It trades about -0.21 of its total potential returns per unit of risk. iShares SPTSX Completion is currently generating about 0.45 per unit of volatility. If you would invest  3,775  in iShares SPTSX Completion on May 5, 2025 and sell it today you would earn a total of  546.00  from holding iShares SPTSX Completion or generate 14.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

BetaPro SPTSX Capped  vs.  iShares SPTSX Completion

BetaPro SPTSX Capped

Risk-Adjusted Performance

Very Weak

Over the last 90 days BetaPro SPTSX Capped has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Etf's fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

iShares SPTSX Completion

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in iShares SPTSX Completion are ranked lower than 35 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, IShares SPTSX displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BetaPro SPTSX and IShares SPTSX

The main advantage of trading using opposite BetaPro SPTSX and IShares SPTSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro SPTSX position performs unexpectedly, IShares SPTSX 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 IShares SPTSX will offset losses from the drop in IShares SPTSX's long position.

The idea behind BetaPro SPTSX Capped and iShares SPTSX Completion pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.