Correlation Between SSgA SPDR and Amundi German
Can any of the company-specific risk be diversified away by investing in both SSgA SPDR and Amundi German 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 Amundi German 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 Amundi German Bund, you can compare the effects of market volatilities on SSgA SPDR and Amundi German 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 Amundi German. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSgA SPDR and Amundi German.
Diversification Opportunities for SSgA SPDR and Amundi German
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SSgA and Amundi is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding SSgA SPDR ETFs and Amundi German Bund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi German Bund 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 Amundi German. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi German Bund has no effect on the direction of SSgA SPDR i.e., SSgA SPDR and Amundi German go up and down completely randomly.
Pair Corralation between SSgA SPDR and Amundi German
Assuming the 90 days trading horizon SSgA SPDR ETFs is expected to generate 0.54 times more return on investment than Amundi German. However, SSgA SPDR ETFs is 1.85 times less risky than Amundi German. It trades about 0.15 of its potential returns per unit of risk. Amundi German Bund is currently generating about -0.05 per unit of risk. If you would invest 5,174 in SSgA SPDR ETFs on September 13, 2024 and sell it today you would earn a total of 108.00 from holding SSgA SPDR ETFs or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSgA SPDR ETFs vs. Amundi German Bund
Performance |
| Timeline |
| SSgA SPDR ETFs |
| Amundi German Bund |
SSgA SPDR and Amundi German Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSgA SPDR and Amundi German
The main advantage of trading using opposite SSgA SPDR and Amundi German positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSgA SPDR position performs unexpectedly, Amundi German 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 Amundi German will offset losses from the drop in Amundi German'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 |
| Amundi German vs. Lyxor UCITS Japan | Amundi German vs. Lyxor UCITS Japan | Amundi German vs. Lyxor UCITS Stoxx | Amundi German 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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