Correlation Between SPDR Barclays and Wells Fargo
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and Wells Fargo 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 Wells Fargo 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 Wells Fargo, you can compare the effects of market volatilities on SPDR Barclays and Wells Fargo 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 Wells Fargo. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and Wells Fargo.
Diversification Opportunities for SPDR Barclays and Wells Fargo
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SPDR and Wells is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Intermediate and Wells Fargo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wells Fargo 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 Wells Fargo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wells Fargo has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and Wells Fargo go up and down completely randomly.
Pair Corralation between SPDR Barclays and Wells Fargo
Given the investment horizon of 90 days SPDR Barclays Intermediate is expected to under-perform the Wells Fargo. But the etf apears to be less risky and, when comparing its historical volatility, SPDR Barclays Intermediate is 4.31 times less risky than Wells Fargo. The etf trades about -0.28 of its potential returns per unit of risk. The Wells Fargo is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 5,761 in Wells Fargo on January 27, 2024 and sell it today you would earn a total of 232.00 from holding Wells Fargo or generate 4.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SPDR Barclays Intermediate vs. Wells Fargo
Performance |
Timeline |
SPDR Barclays Interm |
Wells Fargo |
SPDR Barclays and Wells Fargo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SPDR Barclays and Wells Fargo
The main advantage of trading using opposite SPDR Barclays and Wells Fargo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, Wells Fargo 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 Wells Fargo will offset losses from the drop in Wells Fargo's long position.SPDR Barclays vs. SPDR Barclays Short | SPDR Barclays vs. SPDR Bloomberg Emerging | SPDR Barclays vs. SPDR Barclays Long | SPDR Barclays vs. SPDR Barclays Short |
Wells Fargo vs. Aquagold International | Wells Fargo vs. Thrivent High Yield | Wells Fargo vs. Morningstar Unconstrained Allocation | Wells Fargo vs. Via Renewables |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |