Correlation Between NEOS Nasdaq and SPDR FTSE
Can any of the company-specific risk be diversified away by investing in both NEOS Nasdaq 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 NEOS Nasdaq and SPDR FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEOS Nasdaq 100 Hedged and SPDR FTSE International, you can compare the effects of market volatilities on NEOS Nasdaq 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 NEOS Nasdaq with a short position of SPDR FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEOS Nasdaq and SPDR FTSE.
Diversification Opportunities for NEOS Nasdaq and SPDR FTSE
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NEOS and SPDR is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding NEOS Nasdaq 100 Hedged and SPDR FTSE International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR FTSE International and NEOS Nasdaq 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 NEOS Nasdaq 100 Hedged 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 International has no effect on the direction of NEOS Nasdaq i.e., NEOS Nasdaq and SPDR FTSE go up and down completely randomly.
Pair Corralation between NEOS Nasdaq and SPDR FTSE
Given the investment horizon of 90 days NEOS Nasdaq 100 Hedged is expected to under-perform the SPDR FTSE. In addition to that, NEOS Nasdaq is 2.65 times more volatile than SPDR FTSE International. It trades about -0.12 of its total potential returns per unit of risk. SPDR FTSE International is currently generating about -0.24 per unit of volatility. If you would invest 3,924 in SPDR FTSE International on August 26, 2025 and sell it today you would lose (62.50) from holding SPDR FTSE International or give up 1.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
NEOS Nasdaq 100 Hedged vs. SPDR FTSE International
Performance |
| Timeline |
| NEOS Nasdaq 100 |
| SPDR FTSE International |
NEOS Nasdaq and SPDR FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEOS Nasdaq and SPDR FTSE
The main advantage of trading using opposite NEOS Nasdaq and SPDR FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEOS Nasdaq 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.| NEOS Nasdaq vs. Innovator ETFs Trust | NEOS Nasdaq vs. Congress Large Cap | NEOS Nasdaq vs. Innovator SP 500 | NEOS Nasdaq vs. Alpha Architect Quantitative |
| SPDR FTSE vs. SPDR Bloomberg Short | SPDR FTSE vs. NEOS Nasdaq 100 Hedged | SPDR FTSE vs. SPDR SP Retail | SPDR FTSE vs. Global X Blockchain |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |