Correlation Between SPDR FTSE and Immofonds
Can any of the company-specific risk be diversified away by investing in both SPDR FTSE and Immofonds 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 Immofonds 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 Immofonds, you can compare the effects of market volatilities on SPDR FTSE and Immofonds 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 Immofonds. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR FTSE and Immofonds.
Diversification Opportunities for SPDR FTSE and Immofonds
Very good diversification
The 3 months correlation between SPDR and Immofonds is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding SPDR FTSE UK and Immofonds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immofonds 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 Immofonds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immofonds has no effect on the direction of SPDR FTSE i.e., SPDR FTSE and Immofonds go up and down completely randomly.
Pair Corralation between SPDR FTSE and Immofonds
Assuming the 90 days trading horizon SPDR FTSE is expected to generate 124.44 times less return on investment than Immofonds. But when comparing it to its historical volatility, SPDR FTSE UK is 1.19 times less risky than Immofonds. It trades about 0.0 of its potential returns per unit of risk. Immofonds is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 52,200 in Immofonds on September 20, 2024 and sell it today you would earn a total of 7,000 from holding Immofonds or generate 13.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR FTSE UK vs. Immofonds
Performance |
| Timeline |
| SPDR FTSE UK |
| Immofonds |
SPDR FTSE and Immofonds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR FTSE and Immofonds
The main advantage of trading using opposite SPDR FTSE and Immofonds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR FTSE position performs unexpectedly, Immofonds 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 Immofonds will offset losses from the drop in Immofonds' long position.| SPDR FTSE vs. Baloise Holding AG | SPDR FTSE vs. 21Shares Polkadot ETP | SPDR FTSE vs. UBS ETF MSCI | SPDR FTSE vs. BB Biotech AG |
| Immofonds vs. CS Real Estate | Immofonds vs. CS Real Estate | Immofonds vs. Swissinvest Real Estate | Immofonds vs. Realstone Swiss Property |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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