Correlation Between Procimmo Real and SPDR FTSE

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

By analyzing existing cross correlation between Procimmo Real Estate and SPDR FTSE UK, you can compare the effects of market volatilities on Procimmo Real and SPDR FTSE 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 Procimmo Real with a short position of SPDR FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procimmo Real and SPDR FTSE.

Diversification Opportunities for Procimmo Real and SPDR FTSE

-0.48

Correlation Coefficient

Procimmo Real  SPDR FTSE

Very good diversification

The 3 months correlation between Procimmo and SPDR is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Procimmo Real Estate and SPDR FTSE UK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR FTSE UK and Procimmo Real 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 Procimmo Real Estate are associated (or correlated) with SPDR FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR FTSE UK has no effect on the direction of Procimmo Real i.e., Procimmo Real and SPDR FTSE go up and down completely randomly.

Pair Corralation between Procimmo Real and SPDR FTSE

Assuming the 90 days trading horizon Procimmo Real Estate is expected to under-perform the SPDR FTSE. In addition to that, Procimmo Real is 1.23 times more volatile than SPDR FTSE UK. It trades about -0.04 of its total potential returns per unit of risk. SPDR FTSE UK is currently generating about 0.19 per unit of volatility. If you would invest  601.00  in SPDR FTSE UK on December 23, 2024 and sell it today you would earn a total of  45.00  from holding SPDR FTSE UK or generate 7.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Procimmo Real Estate  vs.  SPDR FTSE UK

Procimmo Real Estate

Risk-Adjusted Performance

Very Weak

Over the last 90 days Procimmo Real Estate has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly stable basic indicators, Procimmo Real is not utilizing all of its potentials. The new stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

SPDR FTSE UK

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR FTSE UK are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, SPDR FTSE may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Procimmo Real and SPDR FTSE

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

The idea behind Procimmo Real Estate and SPDR FTSE UK 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.