Correlation Between SPDR Kensho and SPDR Blmbg

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

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

Diversification Opportunities for SPDR Kensho and SPDR Blmbg

0.0

Correlation Coefficient

SPDR Kensho  SPDR Blmbg

Pay attention - limited upside

The 3 months correlation between SPDR and SPDR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Kensho Future and SPDR Blmbg Barclays in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Blmbg Barclays and SPDR Kensho 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 Kensho Future are associated (or correlated) with SPDR Blmbg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Blmbg Barclays has no effect on the direction of SPDR Kensho i.e., SPDR Kensho and SPDR Blmbg go up and down completely randomly.

Pair Corralation between SPDR Kensho and SPDR Blmbg

If you would invest  6,096  in SPDR Kensho Future on April 23, 2025 and sell it today you would earn a total of  1,701  from holding SPDR Kensho Future or generate 27.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SPDR Kensho Future  vs.  SPDR Blmbg Barclays

SPDR Kensho Future

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Kensho Future are ranked lower than 32 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, SPDR Kensho unveiled solid returns over the last few months and may actually be approaching a breakup point.

SPDR Blmbg Barclays

Risk-Adjusted Performance

Very Weak

Over the last 90 days SPDR Blmbg Barclays has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, SPDR Blmbg is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SPDR Kensho and SPDR Blmbg

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

The idea behind SPDR Kensho Future and SPDR Blmbg Barclays 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.