Correlation Between Tema ETF and SPDR Bloomberg

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

By analyzing existing cross correlation between Tema ETF Trust and SPDR Bloomberg 1 10, you can compare the effects of market volatilities on Tema ETF and SPDR Bloomberg 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 Tema ETF with a short position of SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tema ETF and SPDR Bloomberg.

Diversification Opportunities for Tema ETF and SPDR Bloomberg

0.59

Correlation Coefficient

Tema ETF  SPDR Bloomberg

Very weak diversification

The 3 months correlation between Tema and SPDR is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Tema ETF Trust and SPDR Bloomberg 1 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg 1 and Tema ETF 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 Tema ETF Trust are associated (or correlated) with SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg 1 has no effect on the direction of Tema ETF i.e., Tema ETF and SPDR Bloomberg go up and down completely randomly.

Pair Corralation between Tema ETF and SPDR Bloomberg

Considering the 90-day investment horizon Tema ETF Trust is expected to generate 6.32 times more return on investment than SPDR Bloomberg. However, Tema ETF is 6.32 times more volatile than SPDR Bloomberg 1 10. It trades about 0.15 of its potential returns per unit of risk. SPDR Bloomberg 1 10 is currently generating about 0.1 per unit of risk. If you would invest  2,118  in Tema ETF Trust on April 25, 2025 and sell it today you would earn a total of  264.00  from holding Tema ETF Trust or generate 12.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Tema ETF Trust  vs.  SPDR Bloomberg 1 10

Tema ETF Trust

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tema ETF Trust are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Tema ETF showed solid returns over the last few months and may actually be approaching a breakup point.

SPDR Bloomberg 1

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Bloomberg 1 10 are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, SPDR Bloomberg is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Tema ETF and SPDR Bloomberg

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

The idea behind Tema ETF Trust and SPDR Bloomberg 1 10 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.