Correlation Between Cboe UK and SPDR Barclays
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By analyzing existing cross correlation between Cboe UK Consumer and SPDR Barclays 10, you can compare the effects of market volatilities on Cboe UK and SPDR Barclays 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 Cboe UK with a short position of SPDR Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and SPDR Barclays.
Diversification Opportunities for Cboe UK and SPDR Barclays
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cboe and SPDR is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and SPDR Barclays 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Barclays 10 and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with SPDR Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Barclays 10 has no effect on the direction of Cboe UK i.e., Cboe UK and SPDR Barclays go up and down completely randomly.
Pair Corralation between Cboe UK and SPDR Barclays
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 1.68 times more return on investment than SPDR Barclays. However, Cboe UK is 1.68 times more volatile than SPDR Barclays 10. It trades about 0.39 of its potential returns per unit of risk. SPDR Barclays 10 is currently generating about -0.02 per unit of risk. If you would invest 2,958,388 in Cboe UK Consumer on August 27, 2024 and sell it today you would earn a total of 264,328 from holding Cboe UK Consumer or generate 8.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. SPDR Barclays 10
Performance |
| Timeline |
Cboe UK and SPDR Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
SPDR Barclays 10
Pair trading matchups for SPDR Barclays
Pair Trading with Cboe UK and SPDR Barclays
The main advantage of trading using opposite Cboe UK and SPDR Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, SPDR Barclays 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 Barclays will offset losses from the drop in SPDR Barclays' long position.| Cboe UK vs. TR Property Investment | Cboe UK vs. Kinnevik Investment AB | Cboe UK vs. Federal Realty Investment | Cboe UK vs. Playtech Plc |
| SPDR Barclays vs. SPDR Dow Jones | SPDR Barclays vs. SPDR SP Dividend | SPDR Barclays vs. SPDR Barclays Euro | SPDR Barclays vs. SPDR SP Consumer |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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