Correlation Between SSgA SPDR and SSgA SPDR
Can any of the company-specific risk be diversified away by investing in both SSgA SPDR 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 SSgA SPDR and SSgA SPDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSgA SPDR ETFs and SSgA SPDR ETFs, you can compare the effects of market volatilities on SSgA SPDR 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 SSgA SPDR with a short position of SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSgA SPDR and SSgA SPDR.
Diversification Opportunities for SSgA SPDR and SSgA SPDR
Very weak diversification
The 3 months correlation between SSgA and SSgA is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding SSgA SPDR ETFs 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 SSgA SPDR 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 SSgA SPDR ETFs 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 SSgA SPDR i.e., SSgA SPDR and SSgA SPDR go up and down completely randomly.
Pair Corralation between SSgA SPDR and SSgA SPDR
Assuming the 90 days trading horizon SSgA SPDR is expected to generate 1.7 times less return on investment than SSgA SPDR. But when comparing it to its historical volatility, SSgA SPDR ETFs is 2.05 times less risky than SSgA SPDR. It trades about 0.07 of its potential returns per unit of risk. SSgA SPDR ETFs is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,863 in SSgA SPDR ETFs on August 29, 2024 and sell it today you would earn a total of 1,812 from holding SSgA SPDR ETFs or generate 37.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSgA SPDR ETFs vs. SSgA SPDR ETFs
Performance |
| Timeline |
| SSgA SPDR ETFs |
| SSgA SPDR ETFs |
SSgA SPDR and SSgA SPDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSgA SPDR and SSgA SPDR
The main advantage of trading using opposite SSgA SPDR and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSgA SPDR 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.| SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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