Correlation Between Invesco CurrencyShares and SPDR SSGA
Can any of the company-specific risk be diversified away by investing in both Invesco CurrencyShares and SPDR SSGA 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 Invesco CurrencyShares and SPDR SSGA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco CurrencyShares Japanese and SPDR SSGA Gender, you can compare the effects of market volatilities on Invesco CurrencyShares and SPDR SSGA 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 Invesco CurrencyShares with a short position of SPDR SSGA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco CurrencyShares and SPDR SSGA.
Diversification Opportunities for Invesco CurrencyShares and SPDR SSGA
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Invesco and SPDR is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Invesco CurrencyShares Japanes and SPDR SSGA Gender in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SSGA Gender and Invesco CurrencyShares 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 Invesco CurrencyShares Japanese are associated (or correlated) with SPDR SSGA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SSGA Gender has no effect on the direction of Invesco CurrencyShares i.e., Invesco CurrencyShares and SPDR SSGA go up and down completely randomly.
Pair Corralation between Invesco CurrencyShares and SPDR SSGA
Considering the 90-day investment horizon Invesco CurrencyShares Japanese is expected to under-perform the SPDR SSGA. But the etf apears to be less risky and, when comparing its historical volatility, Invesco CurrencyShares Japanese is 1.17 times less risky than SPDR SSGA. The etf trades about -0.03 of its potential returns per unit of risk. The SPDR SSGA Gender is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 8,379 in SPDR SSGA Gender on September 1, 2024 and sell it today you would earn a total of 3,745 from holding SPDR SSGA Gender or generate 44.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco CurrencyShares Japanes vs. SPDR SSGA Gender
Performance |
| Timeline |
| Invesco CurrencyShares |
| SPDR SSGA Gender |
Invesco CurrencyShares and SPDR SSGA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco CurrencyShares and SPDR SSGA
The main advantage of trading using opposite Invesco CurrencyShares and SPDR SSGA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco CurrencyShares position performs unexpectedly, SPDR SSGA 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 SPDR SSGA will offset losses from the drop in SPDR SSGA's long position.| Invesco CurrencyShares vs. Invesco CurrencyShares Canadian | Invesco CurrencyShares vs. Invesco CurrencyShares British |
| SPDR SSGA vs. iShares MSCI ACWI | SPDR SSGA vs. iShares MSCI USA | SPDR SSGA vs. SPDR SP 500 | SPDR SSGA vs. iShares MSCI KLD |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |