Correlation Between SPASX Dividend and VanEck FTSE
Can any of the company-specific risk be diversified away by investing in both SPASX Dividend and VanEck FTSE 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 SPASX Dividend and VanEck FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPASX Dividend Opportunities and VanEck FTSE China, you can compare the effects of market volatilities on SPASX Dividend and VanEck FTSE 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 SPASX Dividend with a short position of VanEck FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPASX Dividend and VanEck FTSE.
Diversification Opportunities for SPASX Dividend and VanEck FTSE
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPASX and VanEck is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding SPASX Dividend Opportunities and VanEck FTSE China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck FTSE China and SPASX Dividend 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 SPASX Dividend Opportunities are associated (or correlated) with VanEck FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck FTSE China has no effect on the direction of SPASX Dividend i.e., SPASX Dividend and VanEck FTSE go up and down completely randomly.
Pair Corralation between SPASX Dividend and VanEck FTSE
Assuming the 90 days trading horizon SPASX Dividend Opportunities is expected to generate 0.53 times more return on investment than VanEck FTSE. However, SPASX Dividend Opportunities is 1.89 times less risky than VanEck FTSE. It trades about 0.18 of its potential returns per unit of risk. VanEck FTSE China is currently generating about 0.01 per unit of risk. If you would invest 165,550 in SPASX Dividend Opportunities on September 1, 2024 and sell it today you would earn a total of 4,140 from holding SPASX Dividend Opportunities or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPASX Dividend Opportunities vs. VanEck FTSE China
Performance |
| Timeline |
SPASX Dividend and VanEck FTSE Volatility Contrast
Predicted Return Density |
| Returns |
SPASX Dividend Opportunities
Pair trading matchups for SPASX Dividend
VanEck FTSE China
Pair trading matchups for VanEck FTSE
Pair Trading with SPASX Dividend and VanEck FTSE
The main advantage of trading using opposite SPASX Dividend and VanEck FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPASX Dividend position performs unexpectedly, VanEck FTSE 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 FTSE will offset losses from the drop in VanEck FTSE's long position.| SPASX Dividend vs. BKI Investment | SPASX Dividend vs. Diversified United Investment | SPASX Dividend vs. Ainsworth Game Technology | SPASX Dividend vs. Bio Gene Technology |
| VanEck FTSE vs. ETFS Morningstar Global | VanEck FTSE vs. BetaShares Geared Equity | VanEck FTSE vs. VanEck Vectors Australian | VanEck FTSE vs. SPDR SPASX 200 |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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