Correlation Between AlphaMark Actively and SPDR SP
Can any of the company-specific risk be diversified away by investing in both AlphaMark Actively and SPDR SP 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 AlphaMark Actively and SPDR SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AlphaMark Actively Managed and SPDR SP 600, you can compare the effects of market volatilities on AlphaMark Actively and SPDR SP 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 AlphaMark Actively with a short position of SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of AlphaMark Actively and SPDR SP.
Diversification Opportunities for AlphaMark Actively and SPDR SP
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AlphaMark and SPDR is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding AlphaMark Actively Managed and SPDR SP 600 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP 600 and AlphaMark Actively 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 AlphaMark Actively Managed are associated (or correlated) with SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP 600 has no effect on the direction of AlphaMark Actively i.e., AlphaMark Actively and SPDR SP go up and down completely randomly.
Pair Corralation between AlphaMark Actively and SPDR SP
Given the investment horizon of 90 days AlphaMark Actively Managed is expected to generate 1.08 times more return on investment than SPDR SP. However, AlphaMark Actively is 1.08 times more volatile than SPDR SP 600. It trades about 0.25 of its potential returns per unit of risk. SPDR SP 600 is currently generating about 0.15 per unit of risk. If you would invest 3,006 in AlphaMark Actively Managed on December 29, 2023 and sell it today you would earn a total of 151.00 from holding AlphaMark Actively Managed or generate 5.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
AlphaMark Actively Managed vs. SPDR SP 600
Performance |
Timeline |
AlphaMark Actively |
SPDR SP 600 |
AlphaMark Actively and SPDR SP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AlphaMark Actively and SPDR SP
The main advantage of trading using opposite AlphaMark Actively and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AlphaMark Actively position performs unexpectedly, SPDR SP 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 SP will offset losses from the drop in SPDR SP's long position.AlphaMark Actively vs. Alcoa Corp | AlphaMark Actively vs. Barloworld Ltd ADR | AlphaMark Actively vs. Morningstar Unconstrained Allocation | AlphaMark Actively vs. High Yield Municipal Fund |
SPDR SP vs. The Coca Cola | SPDR SP vs. Barloworld Ltd ADR | SPDR SP vs. Morningstar Unconstrained Allocation | SPDR SP vs. High Yield Municipal Fund |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |