Correlation Between SPDR Dow and CS Real
Can any of the company-specific risk be diversified away by investing in both SPDR Dow and CS 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 Dow and CS Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Dow Jones and CS Real Estate, you can compare the effects of market volatilities on SPDR Dow and CS 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 Dow with a short position of CS Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Dow and CS Real.
Diversification Opportunities for SPDR Dow and CS Real
Average diversification
The 3 months correlation between SPDR and HOSP is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Dow Jones and CS Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CS Real Estate 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 CS Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CS Real Estate has no effect on the direction of SPDR Dow i.e., SPDR Dow and CS Real go up and down completely randomly.
Pair Corralation between SPDR Dow and CS Real
Assuming the 90 days trading horizon SPDR Dow Jones is expected to under-perform the CS Real. But the etf apears to be less risky and, when comparing its historical volatility, SPDR Dow Jones is 2.14 times less risky than CS Real. The etf trades about -0.08 of its potential returns per unit of risk. The CS Real Estate is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 9,800 in CS Real Estate on September 19, 2024 and sell it today you would earn a total of 650.00 from holding CS Real Estate or generate 6.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Dow Jones vs. CS Real Estate
Performance |
| Timeline |
| SPDR Dow Jones |
| CS Real Estate |
SPDR Dow and CS Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Dow and CS Real
The main advantage of trading using opposite SPDR Dow and CS Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Dow position performs unexpectedly, CS 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 CS Real will offset losses from the drop in CS Real'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 |
| CS Real vs. SPDR Dow Jones | CS Real vs. Baloise Holding AG | CS Real vs. SPDR FTSE UK | CS Real vs. Banque Cantonale du |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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