Correlation Between LO Funds and SPDR Dow
Specify exactly 2 symbols:
By analyzing existing cross correlation between LO Funds Swiss and SPDR Dow Jones, you can compare the effects of market volatilities on LO Funds and SPDR Dow 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 LO Funds with a short position of SPDR Dow. Check out your portfolio center. Please also check ongoing floating volatility patterns of LO Funds and SPDR Dow.
Diversification Opportunities for LO Funds and SPDR Dow
Very good diversification
The 3 months correlation between 0P00001R8Q and SPDR is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding LO Funds Swiss and SPDR Dow Jones in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Dow Jones and LO Funds 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 LO Funds Swiss are associated (or correlated) with SPDR Dow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Dow Jones has no effect on the direction of LO Funds i.e., LO Funds and SPDR Dow go up and down completely randomly.
Pair Corralation between LO Funds and SPDR Dow
Assuming the 90 days trading horizon LO Funds is expected to generate 1.19 times less return on investment than SPDR Dow. But when comparing it to its historical volatility, LO Funds Swiss is 1.34 times less risky than SPDR Dow. It trades about 0.03 of its potential returns per unit of risk. SPDR Dow Jones is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,593 in SPDR Dow Jones on September 20, 2024 and sell it today you would earn a total of 166.00 from holding SPDR Dow Jones or generate 10.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
LO Funds Swiss vs. SPDR Dow Jones
Performance |
| Timeline |
| LO Funds Swiss |
| SPDR Dow Jones |
LO Funds and SPDR Dow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LO Funds and SPDR Dow
The main advantage of trading using opposite LO Funds and SPDR Dow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LO Funds position performs unexpectedly, SPDR Dow 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 Dow will offset losses from the drop in SPDR Dow's long position.| LO Funds vs. SPDR Dow Jones | LO Funds vs. Baloise Holding AG | LO Funds vs. Banque Cantonale du | LO Funds vs. 21Shares Polkadot ETP |
| SPDR Dow vs. Baloise Holding AG | SPDR Dow vs. 21Shares Polkadot ETP | SPDR Dow vs. UBS ETF MSCI | SPDR Dow vs. BB Biotech AG |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |