Correlation Between SPDR Portfolio and Aftermath Silver

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

By analyzing existing cross correlation between SPDR Portfolio Intermediate and Aftermath Silver, you can compare the effects of market volatilities on SPDR Portfolio and Aftermath Silver 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 Portfolio with a short position of Aftermath Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Portfolio and Aftermath Silver.

Diversification Opportunities for SPDR Portfolio and Aftermath Silver

-0.45

Correlation Coefficient

SPDR Portfolio  Aftermath Silver

Very good diversification

The 3 months correlation between SPDR and Aftermath is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Portfolio Intermediate and Aftermath Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aftermath Silver and SPDR Portfolio 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 Portfolio Intermediate are associated (or correlated) with Aftermath Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aftermath Silver has no effect on the direction of SPDR Portfolio i.e., SPDR Portfolio and Aftermath Silver go up and down completely randomly.

Pair Corralation between SPDR Portfolio and Aftermath Silver

Given the investment horizon of 90 days SPDR Portfolio Intermediate is expected to under-perform the Aftermath Silver. But the etf apears to be less risky and, when comparing its historical volatility, SPDR Portfolio Intermediate is 19.44 times less risky than Aftermath Silver. The etf trades about -0.1 of its potential returns per unit of risk. The Aftermath Silver is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  34.00  in Aftermath Silver on February 24, 2025 and sell it today you would earn a total of  3.00  from holding Aftermath Silver or generate 8.82% return on investment over 90 days.

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

SPDR Portfolio Intermediate  vs.  Aftermath Silver

SPDR Portfolio Inter

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Portfolio Intermediate are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, SPDR Portfolio is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Aftermath Silver

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Aftermath Silver are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Aftermath Silver reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SPDR Portfolio and Aftermath Silver

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

The idea behind SPDR Portfolio Intermediate and Aftermath Silver 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.