Correlation Between SPDR Dow and BCV Swiss
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By analyzing existing cross correlation between SPDR Dow Jones and BCV Swiss Equity, you can compare the effects of market volatilities on SPDR Dow and BCV Swiss 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 BCV Swiss. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Dow and BCV Swiss.
Diversification Opportunities for SPDR Dow and BCV Swiss
Significant diversification
The 3 months correlation between SPDR and BCV is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Dow Jones and BCV Swiss Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCV Swiss Equity 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 BCV Swiss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCV Swiss Equity has no effect on the direction of SPDR Dow i.e., SPDR Dow and BCV Swiss go up and down completely randomly.
Pair Corralation between SPDR Dow and BCV Swiss
Assuming the 90 days trading horizon SPDR Dow is expected to generate 3.62 times less return on investment than BCV Swiss. In addition to that, SPDR Dow is 1.49 times more volatile than BCV Swiss Equity. It trades about 0.01 of its total potential returns per unit of risk. BCV Swiss Equity is currently generating about 0.04 per unit of volatility. If you would invest 9,992 in BCV Swiss Equity on October 14, 2024 and sell it today you would earn a total of 1,099 from holding BCV Swiss Equity or generate 11.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
SPDR Dow Jones vs. BCV Swiss Equity
Performance |
| Timeline |
| SPDR Dow Jones |
| BCV Swiss Equity |
SPDR Dow and BCV Swiss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Dow and BCV Swiss
The main advantage of trading using opposite SPDR Dow and BCV Swiss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Dow position performs unexpectedly, BCV Swiss 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 BCV Swiss will offset losses from the drop in BCV Swiss' long position.| SPDR Dow vs. SPDR MSCI Europe | SPDR Dow vs. SPDR SP Utilities | SPDR Dow vs. SPDR MSCI Europe | SPDR Dow vs. SPDR MSCI EM |
| BCV Swiss vs. Procimmo Real Estate | BCV Swiss vs. SPDR Dow Jones | BCV Swiss vs. Baloise Holding AG | BCV Swiss vs. Autoneum Holding AG |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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