Correlation Between SPDR Nuveen and FFHG
Can any of the company-specific risk be diversified away by investing in both SPDR Nuveen and FFHG 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 Nuveen and FFHG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Nuveen Municipal and FFHG, you can compare the effects of market volatilities on SPDR Nuveen and FFHG 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 Nuveen with a short position of FFHG. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Nuveen and FFHG.
Diversification Opportunities for SPDR Nuveen and FFHG
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPDR and FFHG is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Nuveen Municipal and FFHG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FFHG and SPDR Nuveen 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 Nuveen Municipal are associated (or correlated) with FFHG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FFHG has no effect on the direction of SPDR Nuveen i.e., SPDR Nuveen and FFHG go up and down completely randomly.
Pair Corralation between SPDR Nuveen and FFHG
If you would invest 2,748 in SPDR Nuveen Municipal on August 31, 2024 and sell it today you would earn a total of 38.00 from holding SPDR Nuveen Municipal or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
SPDR Nuveen Municipal vs. FFHG
Performance |
| Timeline |
| SPDR Nuveen Municipal |
| FFHG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR Nuveen and FFHG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Nuveen and FFHG
The main advantage of trading using opposite SPDR Nuveen and FFHG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Nuveen position performs unexpectedly, FFHG 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 FFHG will offset losses from the drop in FFHG's long position.| SPDR Nuveen vs. iShares JP Morgan | SPDR Nuveen vs. iShares iBoxx Investment | SPDR Nuveen vs. SPDR Nuveen Bloomberg | SPDR Nuveen vs. iShares MBS ETF |
| FFHG vs. FT Vest Equity | FFHG vs. Zillow Group Class | FFHG vs. Northern Lights | FFHG vs. VanEck Vectors Moodys |
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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