Correlation Between SPDR SSgA and ASPY
Can any of the company-specific risk be diversified away by investing in both SPDR SSgA and ASPY 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 ASPY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SSgA Global and ASPY, you can compare the effects of market volatilities on SPDR SSgA and ASPY 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 ASPY. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SSgA and ASPY.
Diversification Opportunities for SPDR SSgA and ASPY
Very good diversification
The 3 months correlation between SPDR and ASPY is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SSgA Global and ASPY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASPY 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 Global are associated (or correlated) with ASPY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASPY has no effect on the direction of SPDR SSgA i.e., SPDR SSgA and ASPY go up and down completely randomly.
Pair Corralation between SPDR SSgA and ASPY
If you would invest 4,463 in SPDR SSgA Global on September 2, 2024 and sell it today you would earn a total of 102.00 from holding SPDR SSgA Global or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
SPDR SSgA Global vs. ASPY
Performance |
| Timeline |
| SPDR SSgA Global |
| ASPY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR SSgA and ASPY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SSgA and ASPY
The main advantage of trading using opposite SPDR SSgA and ASPY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SSgA position performs unexpectedly, ASPY 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 ASPY will offset losses from the drop in ASPY's long position.| SPDR SSgA vs. SPDR SSgA Income | SPDR SSgA vs. SPDR SSgA Multi Asset | SPDR SSgA vs. SPDR Bloomberg International | SPDR SSgA vs. SPDR Bloomberg Emerging |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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