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
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ekinops and SSgA is -0.36. 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 3.87 times more volatile than SSgA SPDR ETFs. It trades about -0.16 of its total potential returns per unit of risk. SSgA SPDR ETFs is currently generating about 0.06 per unit of volatility. If you would invest 6,955 in SSgA SPDR ETFs on September 12, 2024 and sell it today you would earn a total of 77.00 from holding SSgA SPDR ETFs or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| 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. Groupe Guillin SA | Ekinops SA vs. Stef SA | Ekinops SA vs. SA Catana Group | Ekinops SA vs. Jacquet Metal Service |
| SSgA SPDR vs. Lyxor UCITS Japan | SSgA SPDR vs. Lyxor UCITS Japan | SSgA SPDR vs. Lyxor UCITS Stoxx | SSgA SPDR vs. Amundi CAC 40 |
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 Positions Ratings module to 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.
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