Correlation Between SPDR Dow and Zurich Invest
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By analyzing existing cross correlation between SPDR Dow Jones and Zurich Invest II, you can compare the effects of market volatilities on SPDR Dow and Zurich Invest 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 Dow with a short position of Zurich Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Dow and Zurich Invest.
Diversification Opportunities for SPDR Dow and Zurich Invest
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SPDR and Zurich is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Dow Jones and Zurich Invest II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zurich Invest II and SPDR Dow 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 Dow Jones are associated (or correlated) with Zurich Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zurich Invest II has no effect on the direction of SPDR Dow i.e., SPDR Dow and Zurich Invest go up and down completely randomly.
Pair Corralation between SPDR Dow and Zurich Invest
Assuming the 90 days trading horizon SPDR Dow Jones is expected to generate 5.07 times more return on investment than Zurich Invest. However, SPDR Dow is 5.07 times more volatile than Zurich Invest II. It trades about 0.04 of its potential returns per unit of risk. Zurich Invest II is currently generating about 0.07 per unit of risk. If you would invest 1,533 in SPDR Dow Jones on September 19, 2024 and sell it today you would earn a total of 235.00 from holding SPDR Dow Jones or generate 15.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.75% |
| Values | Daily Returns |
SPDR Dow Jones vs. Zurich Invest II
Performance |
| Timeline |
| SPDR Dow Jones |
| Zurich Invest II |
SPDR Dow and Zurich Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Dow and Zurich Invest
The main advantage of trading using opposite SPDR Dow and Zurich Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Dow position performs unexpectedly, Zurich Invest 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 Zurich Invest will offset losses from the drop in Zurich Invest's long position.| SPDR Dow vs. Baloise Holding AG | SPDR Dow vs. 21Shares Polkadot ETP | SPDR Dow vs. UBS ETF MSCI | SPDR Dow vs. BB Biotech AG |
| Zurich Invest vs. SPDR Dow Jones | Zurich Invest vs. Baloise Holding AG | Zurich Invest vs. Banque Cantonale du | Zurich Invest vs. 21Shares Polkadot ETP |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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