Correlation Between Cboe UK and SPDR SP
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By analyzing existing cross correlation between Cboe UK Consumer and SPDR SP Materials, you can compare the effects of market volatilities on Cboe UK 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 Cboe UK with a short position of SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and SPDR SP.
Diversification Opportunities for Cboe UK and SPDR SP
Significant diversification
The 3 months correlation between Cboe and SPDR is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and SPDR SP Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Materials 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 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 Materials has no effect on the direction of Cboe UK i.e., Cboe UK and SPDR SP go up and down completely randomly.
Pair Corralation between Cboe UK and SPDR SP
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 1.37 times more return on investment than SPDR SP. However, Cboe UK is 1.37 times more volatile than SPDR SP Materials. It trades about 0.41 of its potential returns per unit of risk. SPDR SP Materials is currently generating about -0.03 per unit of risk. If you would invest 2,958,388 in Cboe UK Consumer on August 28, 2024 and sell it today you would earn a total of 284,603 from holding Cboe UK Consumer or generate 9.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. SPDR SP Materials
Performance |
| Timeline |
Cboe UK and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
SPDR SP Materials
Pair trading matchups for SPDR SP
Pair Trading with Cboe UK and SPDR SP
The main advantage of trading using opposite Cboe UK and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK 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.| Cboe UK vs. Skandinaviska Enskilda Banken | Cboe UK vs. Arrow Electronics | Cboe UK vs. Qurate Retail Series | Cboe UK vs. Alior Bank SA |
| SPDR SP vs. iShares Treasury Bond | SPDR SP vs. iShares Treasury Bond | SPDR SP vs. Amundi Treasury Bond | SPDR SP vs. SPDR Barclays 10 |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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