Correlation Between FLIY and SPDR Portfolio
Can any of the company-specific risk be diversified away by investing in both FLIY and SPDR Portfolio 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 FLIY and SPDR Portfolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FLIY and SPDR Portfolio Europe, you can compare the effects of market volatilities on FLIY and SPDR Portfolio 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 FLIY with a short position of SPDR Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLIY and SPDR Portfolio.
Diversification Opportunities for FLIY and SPDR Portfolio
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FLIY and SPDR is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding FLIY and SPDR Portfolio Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Portfolio Europe and FLIY 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 FLIY are associated (or correlated) with SPDR Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Portfolio Europe has no effect on the direction of FLIY i.e., FLIY and SPDR Portfolio go up and down completely randomly.
Pair Corralation between FLIY and SPDR Portfolio
If you would invest (100.00) in FLIY on August 29, 2024 and sell it today you would earn a total of 100.00 from holding FLIY or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
FLIY vs. SPDR Portfolio Europe
Performance |
| Timeline |
| FLIY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SPDR Portfolio Europe |
FLIY and SPDR Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLIY and SPDR Portfolio
The main advantage of trading using opposite FLIY and SPDR Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLIY position performs unexpectedly, SPDR Portfolio 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 Portfolio will offset losses from the drop in SPDR Portfolio's long position.| FLIY vs. Franklin FTSE Germany | FLIY vs. Franklin FTSE Australia | FLIY vs. Franklin FTSE United | FLIY vs. Franklin FTSE Mexico |
| SPDR Portfolio vs. Franklin FTSE Europe | SPDR Portfolio vs. SPDR Portfolio MSCI | SPDR Portfolio vs. iShares Core MSCI | SPDR Portfolio vs. JPMorgan BetaBuilders Europe |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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