Risk Appetite Index vs S&P 500
Live side-by-side comparison with current values, changes, and key statistics.
Why This Comparison Matters
CRAI aggregates multiple risk-appetite signals across asset classes. When CRAI confirms SPY gains, the rally is broad-based and supported by credit, volatility, and positioning indicators. When CRAI diverges from SPY (CRAI falling while SPY rallies), the equity rally is not confirmed by broader risk-asset indicators, a warning sign.
Cross-Asset Analysis
This page pairs Convex Risk Appetite Index (convex Risk Appetite Index, cross-asset risk appetite from 5 ETF price ratio z-scores (IWM/SPY, HYG/LQD, XLY/XLP, EEM/EFA, KRE/SPY). 0-100 scale) against S&P 500 ETF (SPY) (SPDR S&P 500 ETF, tracks the benchmark US equity index) to surface the specific macro signal that lives in the cross asset pair relationship. Correlation trading desks price options on the Convex Risk Appetite Index-S&P 500 ETF (SPY) spread once the underlying relationship has been quantified across adequate regimes. Policy interventions can mechanically narrow or expand the Convex Risk Appetite Index-S&P 500 ETF (SPY) spread, most notably when central banks buy specific asset classes.
The connection between Convex Risk Appetite Index and S&P 500 ETF (SPY) runs through shared macro drivers, and isolating the spread decomposes common factors from idiosyncratic noise. Tactical allocators reposition across the Convex Risk Appetite Index-S&P 500 ETF (SPY) spread based on where each asset sits relative to its model anchor. Risk-off regimes compress correlations and push the Convex Risk Appetite Index-S&P 500 ETF (SPY) spread into narrower ranges.
Analysts combine Convex Risk Appetite Index with S&P 500 ETF (SPY) to build cross-asset indicators that are tougher to game than any single-market series. Structural shifts hitting Convex Risk Appetite Index or S&P 500 ETF (SPY), including retail demand or regulatory changes, can structurally reprice the relationship.
90-Day Statistics
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Frequently Asked Questions
What is the relationship between Convex Risk Appetite Index and S&P 500 ETF (SPY)?+
Convex Risk Appetite Index and S&P 500 ETF (SPY) are connected through shared macro drivers across asset classes. When the dominant macro driver shifts, both respond, though with different sensitivities and at different speeds. The spread between Convex Risk Appetite Index and S&P 500 ETF (SPY) captures the specific macro signal that flows through this relationship.
When does Convex Risk Appetite Index typically lead S&P 500 ETF (SPY)?+
Convex Risk Appetite Index tends to lead S&P 500 ETF (SPY) during macro regime changes, where the more liquid asset moves first. In those periods, moves in Convex Risk Appetite Index precede corresponding moves in S&P 500 ETF (SPY) by days to weeks, depending on the transmission channel and the depth of each market.
How are Convex Risk Appetite Index and S&P 500 ETF (SPY) historically correlated?+
Long-run correlation between Convex Risk Appetite Index and S&P 500 ETF (SPY) varies by regime. Cross-asset correlations vary by regime, tending to tighten in stress and loosen during normal conditions. The correlation is not stable: it shifts with macro conditions, and the periods when it breaks down are often the most informative moments in the Convex Risk Appetite Index-S&P 500 ETF (SPY) relationship.
What macro conditions drive divergence between Convex Risk Appetite Index and S&P 500 ETF (SPY)?+
Divergence between Convex Risk Appetite Index and S&P 500 ETF (SPY) typically arises from idiosyncratic shocks in one asset, policy interventions, or structural shifts in demand. When one asset's idiosyncratic drivers dominate, the spread moves in ways that the common macro story does not predict, which is usually a signal to look more carefully at the specific drivers at work in Convex Risk Appetite Index or S&P 500 ETF (SPY).
Is Convex Risk Appetite Index a hedge for S&P 500 ETF (SPY)?+
Cross-asset hedges between Convex Risk Appetite Index and S&P 500 ETF (SPY) work when the macro drivers of the two assets are sufficiently decorrelated, which depends on the regime and therefore needs to be reviewed as conditions change. Effective hedging requires matching the hedge to the specific risk being protected, and the Convex Risk Appetite Index-S&P 500 ETF (SPY) pair is best stress-tested under scenarios the investor most worries about before being sized into a real portfolio.
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Data sourced from FRED, CoinGecko, CBOE, and other providers. This page is for informational purposes only and does not constitute financial advice. Past performance does not guarantee future results.