Correlation Between SPDR SSGA and FolioBeyond Rising
Can any of the company-specific risk be diversified away by investing in both SPDR SSGA and FolioBeyond Rising 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 SPDR SSGA and FolioBeyond Rising into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SSGA Fixed and FolioBeyond Rising Rates, you can compare the effects of market volatilities on SPDR SSGA and FolioBeyond Rising 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 SPDR SSGA with a short position of FolioBeyond Rising. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SSGA and FolioBeyond Rising.
Diversification Opportunities for SPDR SSGA and FolioBeyond Rising
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and FolioBeyond is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SSGA Fixed and FolioBeyond Rising Rates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FolioBeyond Rising Rates and SPDR SSGA 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 SPDR SSGA Fixed are associated (or correlated) with FolioBeyond Rising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FolioBeyond Rising Rates has no effect on the direction of SPDR SSGA i.e., SPDR SSGA and FolioBeyond Rising go up and down completely randomly.
Pair Corralation between SPDR SSGA and FolioBeyond Rising
Given the investment horizon of 90 days SPDR SSGA Fixed is expected to generate 0.97 times more return on investment than FolioBeyond Rising. However, SPDR SSGA Fixed is 1.03 times less risky than FolioBeyond Rising. It trades about 0.18 of its potential returns per unit of risk. FolioBeyond Rising Rates is currently generating about 0.09 per unit of risk. If you would invest 2,556 in SPDR SSGA Fixed on September 13, 2024 and sell it today you would earn a total of 30.00 from holding SPDR SSGA Fixed or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SSGA Fixed vs. FolioBeyond Rising Rates
Performance |
| Timeline |
| SPDR SSGA Fixed |
| FolioBeyond Rising Rates |
SPDR SSGA and FolioBeyond Rising Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SSGA and FolioBeyond Rising
The main advantage of trading using opposite SPDR SSGA and FolioBeyond Rising positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SSGA position performs unexpectedly, FolioBeyond Rising 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 FolioBeyond Rising will offset losses from the drop in FolioBeyond Rising's long position.| SPDR SSGA vs. SPDR SSGA Sector | SPDR SSGA vs. SPDR DoubleLine Emerging | SPDR SSGA vs. SPDR DoubleLine Short | SPDR SSGA vs. SPDR SSgA Ultra |
| FolioBeyond Rising vs. Simplify Interest Rate | FolioBeyond Rising vs. KFA Mount Lucas | FolioBeyond Rising vs. Horizon Kinetics Inflation | FolioBeyond Rising vs. iMGP DBi Managed |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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