Correlation Between SPDR FTSE and Pictet Ch
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By analyzing existing cross correlation between SPDR FTSE UK and Pictet Ch Precious, you can compare the effects of market volatilities on SPDR FTSE and Pictet Ch 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 SPDR FTSE with a short position of Pictet Ch. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR FTSE and Pictet Ch.
Diversification Opportunities for SPDR FTSE and Pictet Ch
Very weak diversification
The 3 months correlation between SPDR and Pictet is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding SPDR FTSE UK and Pictet Ch Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pictet Ch Precious and SPDR FTSE 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 SPDR FTSE UK are associated (or correlated) with Pictet Ch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pictet Ch Precious has no effect on the direction of SPDR FTSE i.e., SPDR FTSE and Pictet Ch go up and down completely randomly.
Pair Corralation between SPDR FTSE and Pictet Ch
Assuming the 90 days trading horizon SPDR FTSE is expected to generate 1.41 times less return on investment than Pictet Ch. But when comparing it to its historical volatility, SPDR FTSE UK is 1.15 times less risky than Pictet Ch. It trades about 0.29 of its potential returns per unit of risk. Pictet Ch Precious is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 24,415 in Pictet Ch Precious on November 7, 2024 and sell it today you would earn a total of 1,417 from holding Pictet Ch Precious or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR FTSE UK vs. Pictet Ch Precious
Performance |
| Timeline |
| SPDR FTSE UK |
| Pictet Ch Precious |
SPDR FTSE and Pictet Ch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR FTSE and Pictet Ch
The main advantage of trading using opposite SPDR FTSE and Pictet Ch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR FTSE position performs unexpectedly, Pictet Ch 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 Pictet Ch will offset losses from the drop in Pictet Ch's long position.| SPDR FTSE vs. SPDR MSCI Europe | SPDR FTSE vs. SPDR SP Utilities | SPDR FTSE vs. SPDR MSCI Europe | SPDR FTSE vs. SPDR MSCI EM |
| Pictet Ch vs. SPDR Dow Jones | Pictet Ch vs. Baloise Holding AG | Pictet Ch vs. Autoneum Holding AG | Pictet Ch vs. SPDR FTSE UK |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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