Correlation Between IShares Core and SSgA SPDR
Can any of the company-specific risk be diversified away by investing in both IShares Core 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 IShares Core and SSgA SPDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core MSCI and SSgA SPDR ETFs, you can compare the effects of market volatilities on IShares Core 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 IShares Core with a short position of SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and SSgA SPDR.
Diversification Opportunities for IShares Core and SSgA SPDR
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and SSgA is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core MSCI 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 IShares Core 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 iShares Core MSCI 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 IShares Core i.e., IShares Core and SSgA SPDR go up and down completely randomly.
Pair Corralation between IShares Core and SSgA SPDR
Assuming the 90 days trading horizon iShares Core MSCI is expected to under-perform the SSgA SPDR. But the etf apears to be less risky and, when comparing its historical volatility, iShares Core MSCI is 1.82 times less risky than SSgA SPDR. The etf trades about -0.03 of its potential returns per unit of risk. The SSgA SPDR ETFs is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 3,100 in SSgA SPDR ETFs on October 24, 2024 and sell it today you would earn a total of 380.00 from holding SSgA SPDR ETFs or generate 12.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Core MSCI vs. SSgA SPDR ETFs
Performance |
| Timeline |
| iShares Core MSCI |
| SSgA SPDR ETFs |
IShares Core and SSgA SPDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and SSgA SPDR
The main advantage of trading using opposite IShares Core and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core 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.| IShares Core vs. iShares III Public | IShares Core vs. iShares France Govt | IShares Core vs. iShares Edge MSCI | IShares Core vs. iShares Core FTSE |
| SSgA SPDR vs. Vanguard SP 500 | SSgA SPDR vs. SPDR Dow Jones | SSgA SPDR vs. iShares Core MSCI | SSgA SPDR vs. iShares SP 500 |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |