Correlation Between Cboe UK and SSgA SPDR
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By analyzing existing cross correlation between Cboe UK Consumer and SSgA SPDR ETFs, you can compare the effects of market volatilities on Cboe UK and SSgA SPDR 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 SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and SSgA SPDR.
Diversification Opportunities for Cboe UK and SSgA SPDR
Excellent diversification
The 3 months correlation between Cboe and SSgA is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and SSgA SPDR ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSgA SPDR ETFs 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 SSgA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSgA SPDR ETFs has no effect on the direction of Cboe UK i.e., Cboe UK and SSgA SPDR go up and down completely randomly.
Pair Corralation between Cboe UK and SSgA SPDR
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 2.68 times more return on investment than SSgA SPDR. However, Cboe UK is 2.68 times more volatile than SSgA SPDR ETFs. It trades about 0.07 of its potential returns per unit of risk. SSgA SPDR ETFs is currently generating about 0.04 per unit of risk. If you would invest 2,539,997 in Cboe UK Consumer on August 28, 2024 and sell it today you would earn a total of 702,994 from holding Cboe UK Consumer or generate 27.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.89% |
| Values | Daily Returns |
Cboe UK Consumer vs. SSgA SPDR ETFs
Performance |
| Timeline |
Cboe UK and SSgA SPDR Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
SSgA SPDR ETFs
Pair trading matchups for SSgA SPDR
Pair Trading with Cboe UK and SSgA SPDR
The main advantage of trading using opposite Cboe UK and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, SSgA SPDR 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 SSgA SPDR will offset losses from the drop in SSgA SPDR'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 |
| SSgA SPDR vs. SSgA SPDR Barclays | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs |
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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