Correlation Between SPDR FTSE and 21Shares Polkadot
Can any of the company-specific risk be diversified away by investing in both SPDR FTSE and 21Shares Polkadot 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 SPDR FTSE and 21Shares Polkadot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR FTSE UK and 21Shares Polkadot ETP, you can compare the effects of market volatilities on SPDR FTSE and 21Shares Polkadot 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 21Shares Polkadot. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR FTSE and 21Shares Polkadot.
Diversification Opportunities for SPDR FTSE and 21Shares Polkadot
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and 21Shares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR FTSE UK and 21Shares Polkadot ETP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21Shares Polkadot ETP 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 21Shares Polkadot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Shares Polkadot ETP has no effect on the direction of SPDR FTSE i.e., SPDR FTSE and 21Shares Polkadot go up and down completely randomly.
Pair Corralation between SPDR FTSE and 21Shares Polkadot
If you would invest 320.00 in 21Shares Polkadot ETP on September 23, 2024 and sell it today you would earn a total of 25.00 from holding 21Shares Polkadot ETP or generate 7.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
SPDR FTSE UK vs. 21Shares Polkadot ETP
Performance |
Timeline |
SPDR FTSE UK |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
21Shares Polkadot ETP |
SPDR FTSE and 21Shares Polkadot Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SPDR FTSE and 21Shares Polkadot
The main advantage of trading using opposite SPDR FTSE and 21Shares Polkadot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR FTSE position performs unexpectedly, 21Shares Polkadot 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 21Shares Polkadot will offset losses from the drop in 21Shares Polkadot's long position.SPDR FTSE vs. SPDR MSCI Europe | ||
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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