Correlation Between Immofonds and SPDR Dow
Can any of the company-specific risk be diversified away by investing in both Immofonds and SPDR Dow 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 Immofonds and SPDR Dow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immofonds and SPDR Dow Jones, you can compare the effects of market volatilities on Immofonds and SPDR Dow 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 Immofonds with a short position of SPDR Dow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immofonds and SPDR Dow.
Diversification Opportunities for Immofonds and SPDR Dow
Good diversification
The 3 months correlation between Immofonds and SPDR is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Immofonds and SPDR Dow Jones in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Dow Jones and Immofonds 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 Immofonds are associated (or correlated) with SPDR Dow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Dow Jones has no effect on the direction of Immofonds i.e., Immofonds and SPDR Dow go up and down completely randomly.
Pair Corralation between Immofonds and SPDR Dow
Assuming the 90 days horizon Immofonds is expected to generate 1.29 times more return on investment than SPDR Dow. However, Immofonds is 1.29 times more volatile than SPDR Dow Jones. It trades about 0.27 of its potential returns per unit of risk. SPDR Dow Jones is currently generating about -0.04 per unit of risk. If you would invest 56,200 in Immofonds on September 19, 2024 and sell it today you would earn a total of 2,600 from holding Immofonds or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Immofonds vs. SPDR Dow Jones
Performance |
| Timeline |
| Immofonds |
| SPDR Dow Jones |
Immofonds and SPDR Dow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immofonds and SPDR Dow
The main advantage of trading using opposite Immofonds and SPDR Dow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immofonds position performs unexpectedly, SPDR Dow 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 SPDR Dow will offset losses from the drop in SPDR Dow's long position.| Immofonds vs. CS Real Estate | Immofonds vs. CS Real Estate | Immofonds vs. Swissinvest Real Estate | Immofonds vs. Realstone Swiss Property |
| SPDR Dow vs. Baloise Holding AG | SPDR Dow vs. 21Shares Polkadot ETP | SPDR Dow vs. UBS ETF MSCI | SPDR Dow vs. BB Biotech 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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