Correlation Between SPDR SP and VanEck AMX
Can any of the company-specific risk be diversified away by investing in both SPDR SP and VanEck AMX 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 SP and VanEck AMX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP 500 and VanEck AMX UCITS, you can compare the effects of market volatilities on SPDR SP and VanEck AMX 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 SP with a short position of VanEck AMX. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and VanEck AMX.
Diversification Opportunities for SPDR SP and VanEck AMX
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and VanEck is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP 500 and VanEck AMX UCITS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck AMX UCITS and SPDR SP 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 SP 500 are associated (or correlated) with VanEck AMX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck AMX UCITS has no effect on the direction of SPDR SP i.e., SPDR SP and VanEck AMX go up and down completely randomly.
Pair Corralation between SPDR SP and VanEck AMX
Assuming the 90 days trading horizon SPDR SP 500 is expected to generate 0.97 times more return on investment than VanEck AMX. However, SPDR SP 500 is 1.03 times less risky than VanEck AMX. It trades about 0.01 of its potential returns per unit of risk. VanEck AMX UCITS is currently generating about -0.37 per unit of risk. If you would invest 1,389 in SPDR SP 500 on September 24, 2024 and sell it today you would earn a total of 1.00 from holding SPDR SP 500 or generate 0.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SPDR SP 500 vs. VanEck AMX UCITS
Performance |
Timeline |
SPDR SP 500 |
VanEck AMX UCITS |
SPDR SP and VanEck AMX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SPDR SP and VanEck AMX
The main advantage of trading using opposite SPDR SP and VanEck AMX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, VanEck AMX 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 VanEck AMX will offset losses from the drop in VanEck AMX's long position.SPDR SP vs. iShares Euro Dividend | SPDR SP vs. iShares II Public | SPDR SP vs. Vanguard USD Treasury | SPDR SP vs. VanEck Global Real |
VanEck AMX vs. SPDR Dow Jones | VanEck AMX vs. iShares Core MSCI | VanEck AMX vs. Vanguard FTSE All World | VanEck AMX vs. iShares Core MSCI |
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 Stocks Directory module to find actively traded stocks across global markets.
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