Correlation Between SPDR Global and FlexShares Real
Can any of the company-specific risk be diversified away by investing in both SPDR Global and FlexShares 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 Global and FlexShares Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Global Dow and FlexShares Real Assets, you can compare the effects of market volatilities on SPDR Global and FlexShares 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 Global with a short position of FlexShares Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Global and FlexShares Real.
Diversification Opportunities for SPDR Global and FlexShares Real
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPDR and FlexShares is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Global Dow and FlexShares Real Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexShares Real Assets and SPDR Global 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 Global Dow are associated (or correlated) with FlexShares Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FlexShares Real Assets has no effect on the direction of SPDR Global i.e., SPDR Global and FlexShares Real go up and down completely randomly.
Pair Corralation between SPDR Global and FlexShares Real
Considering the 90-day investment horizon SPDR Global Dow is expected to generate 1.03 times more return on investment than FlexShares Real. However, SPDR Global is 1.03 times more volatile than FlexShares Real Assets. It trades about 0.2 of its potential returns per unit of risk. FlexShares Real Assets is currently generating about 0.12 per unit of risk. If you would invest 14,511 in SPDR Global Dow on May 29, 2025 and sell it today you would earn a total of 1,181 from holding SPDR Global Dow or generate 8.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
SPDR Global Dow vs. FlexShares Real Assets
Performance |
| Timeline |
| SPDR Global Dow |
| FlexShares Real Assets |
SPDR Global and FlexShares Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Global and FlexShares Real
The main advantage of trading using opposite SPDR Global and FlexShares Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Global position performs unexpectedly, FlexShares 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 FlexShares Real will offset losses from the drop in FlexShares Real's long position.| SPDR Global vs. iShares Global 100 | SPDR Global vs. iShares MSCI Belgium | SPDR Global vs. iShares MSCI Netherlands | SPDR Global vs. iShares Dow Jones |
| FlexShares Real vs. WisdomTree Interest Rate | FlexShares Real vs. VictoryShares International Volatility | FlexShares Real vs. First Trust Developed |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |