Correlation Between Ekinops SA and SSgA SPDR
Can any of the company-specific risk be diversified away by investing in both Ekinops SA and SSgA SPDR 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 Ekinops SA and SSgA SPDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekinops SA and SSgA SPDR ETFs, you can compare the effects of market volatilities on Ekinops SA and SSgA SPDR 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 Ekinops SA with a short position of SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekinops SA and SSgA SPDR.
Diversification Opportunities for Ekinops SA and SSgA SPDR
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ekinops and SSgA is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA and SSgA SPDR ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSgA SPDR ETFs and Ekinops SA 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 Ekinops SA are associated (or correlated) with SSgA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSgA SPDR ETFs has no effect on the direction of Ekinops SA i.e., Ekinops SA and SSgA SPDR go up and down completely randomly.
Pair Corralation between Ekinops SA and SSgA SPDR
Assuming the 90 days trading horizon Ekinops SA is expected to under-perform the SSgA SPDR. In addition to that, Ekinops SA is 2.09 times more volatile than SSgA SPDR ETFs. It trades about -0.06 of its total potential returns per unit of risk. SSgA SPDR ETFs is currently generating about 0.02 per unit of volatility. If you would invest 4,889 in SSgA SPDR ETFs on September 1, 2024 and sell it today you would earn a total of 347.00 from holding SSgA SPDR ETFs or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.92% |
| Values | Daily Returns |
Ekinops SA vs. SSgA SPDR ETFs
Performance |
| Timeline |
| Ekinops SA |
| SSgA SPDR ETFs |
Ekinops SA and SSgA SPDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekinops SA and SSgA SPDR
The main advantage of trading using opposite Ekinops SA and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA position performs unexpectedly, SSgA SPDR 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 SSgA SPDR will offset losses from the drop in SSgA SPDR's long position.| Ekinops SA vs. Claranova SE | Ekinops SA vs. Derichebourg | Ekinops SA vs. Mersen SA | Ekinops SA vs. BigBen Interactive |
| SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |