Correlation Between SPDR SSGA and ProShares
Can any of the company-specific risk be diversified away by investing in both SPDR SSGA and ProShares 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 ProShares 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 ProShares, you can compare the effects of market volatilities on SPDR SSGA and ProShares 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 ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SSGA and ProShares.
Diversification Opportunities for SPDR SSGA and ProShares
Pay attention - limited upside
The 3 months correlation between SPDR and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SSGA Fixed and ProShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares 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 ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares has no effect on the direction of SPDR SSGA i.e., SPDR SSGA and ProShares go up and down completely randomly.
Pair Corralation between SPDR SSGA and ProShares
If you would invest 2,570 in SPDR SSGA Fixed on September 5, 2024 and sell it today you would earn a total of 23.00 from holding SPDR SSGA Fixed or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SPDR SSGA Fixed vs. ProShares
Performance |
| Timeline |
| SPDR SSGA Fixed |
| ProShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR SSGA and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SSGA and ProShares
The main advantage of trading using opposite SPDR SSGA and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SSGA position performs unexpectedly, ProShares 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 ProShares will offset losses from the drop in ProShares' 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 |
| ProShares vs. SPDR Bloomberg Barclays | ProShares vs. SPDR SSGA Fixed | ProShares vs. SPDR DoubleLine Short | ProShares vs. SPDR Portfolio Corporate |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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