Correlation Between Spinnaker ETF and Flaherty

Can any of the company-specific risk be diversified away by investing in both Spinnaker ETF and Flaherty 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 Spinnaker ETF and Flaherty into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Spinnaker ETF Series and Flaherty and Crumrine, you can compare the effects of market volatilities on Spinnaker ETF and Flaherty 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 Spinnaker ETF with a short position of Flaherty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spinnaker ETF and Flaherty.

Diversification Opportunities for Spinnaker ETF and Flaherty

0.74

Correlation Coefficient

Spinnaker ETF  Flaherty

Poor diversification

The 3 months correlation between Spinnaker and Flaherty is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Spinnaker ETF Series and Flaherty and Crumrine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flaherty and Crumrine and Spinnaker ETF 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 Spinnaker ETF Series are associated (or correlated) with Flaherty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flaherty and Crumrine has no effect on the direction of Spinnaker ETF i.e., Spinnaker ETF and Flaherty go up and down completely randomly.

Pair Corralation between Spinnaker ETF and Flaherty

Given the investment horizon of 90 days Spinnaker ETF is expected to generate 1.55 times less return on investment than Flaherty. But when comparing it to its historical volatility, Spinnaker ETF Series is 2.62 times less risky than Flaherty. It trades about 0.22 of its potential returns per unit of risk. Flaherty and Crumrine is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  1,952  in Flaherty and Crumrine on December 30, 2024 and sell it today you would earn a total of  78.00  from holding Flaherty and Crumrine or generate 4.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Spinnaker ETF Series  vs.  Flaherty and Crumrine

Spinnaker ETF Series

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Spinnaker ETF Series are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Spinnaker ETF is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Flaherty and Crumrine

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Flaherty and Crumrine are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, Flaherty is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Spinnaker ETF and Flaherty

The main advantage of trading using opposite Spinnaker ETF and Flaherty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spinnaker ETF position performs unexpectedly, Flaherty 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 Flaherty will offset losses from the drop in Flaherty's long position.

The idea behind Spinnaker ETF Series and Flaherty and Crumrine pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.