Correlation Between SPDR FTSE and Procimmo Real
Can any of the company-specific risk be diversified away by investing in both SPDR FTSE and Procimmo Real 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 Procimmo Real 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 Procimmo Real Estate, you can compare the effects of market volatilities on SPDR FTSE and Procimmo Real 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 Procimmo Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR FTSE and Procimmo Real.
Diversification Opportunities for SPDR FTSE and Procimmo Real
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPDR and Procimmo is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding SPDR FTSE UK and Procimmo Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procimmo Real Estate 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 Procimmo Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procimmo Real Estate has no effect on the direction of SPDR FTSE i.e., SPDR FTSE and Procimmo Real go up and down completely randomly.
Pair Corralation between SPDR FTSE and Procimmo Real
Assuming the 90 days trading horizon SPDR FTSE is expected to generate 1.25 times less return on investment than Procimmo Real. But when comparing it to its historical volatility, SPDR FTSE UK is 1.29 times less risky than Procimmo Real. It trades about 0.14 of its potential returns per unit of risk. Procimmo Real Estate is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 15,000 in Procimmo Real Estate on November 7, 2024 and sell it today you would earn a total of 960.00 from holding Procimmo Real Estate or generate 6.4% 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. Procimmo Real Estate
Performance |
| Timeline |
| SPDR FTSE UK |
| Procimmo Real Estate |
SPDR FTSE and Procimmo Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR FTSE and Procimmo Real
The main advantage of trading using opposite SPDR FTSE and Procimmo Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR FTSE position performs unexpectedly, Procimmo Real 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 Procimmo Real will offset losses from the drop in Procimmo Real'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 |
| Procimmo Real vs. SPDR Dow Jones | Procimmo Real vs. Baloise Holding AG | Procimmo Real vs. Autoneum Holding AG | Procimmo Real 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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