Correlation Between DAX Index and SSgA SPDR
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By analyzing existing cross correlation between DAX Index and SSgA SPDR ETFs, you can compare the effects of market volatilities on DAX Index and SSgA SPDR 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 DAX Index with a short position of SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and SSgA SPDR.
Diversification Opportunities for DAX Index and SSgA SPDR
Very weak diversification
The 3 months correlation between DAX and SSgA is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and SSgA SPDR ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSgA SPDR ETFs and DAX Index 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 DAX Index are associated (or correlated) with SSgA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSgA SPDR ETFs has no effect on the direction of DAX Index i.e., DAX Index and SSgA SPDR go up and down completely randomly.
Pair Corralation between DAX Index and SSgA SPDR
Assuming the 90 days trading horizon DAX Index is expected to generate 2.71 times more return on investment than SSgA SPDR. However, DAX Index is 2.71 times more volatile than SSgA SPDR ETFs. It trades about 0.2 of its potential returns per unit of risk. SSgA SPDR ETFs is currently generating about 0.35 per unit of risk. If you would invest 1,914,785 in DAX Index on September 3, 2024 and sell it today you would earn a total of 78,577 from holding DAX Index or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. SSgA SPDR ETFs
Performance |
| Timeline |
DAX Index and SSgA SPDR Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
SSgA SPDR ETFs
Pair trading matchups for SSgA SPDR
Pair Trading with DAX Index and SSgA SPDR
The main advantage of trading using opposite DAX Index and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, SSgA SPDR 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 SSgA SPDR will offset losses from the drop in SSgA SPDR's long position.| DAX Index vs. SPORT LISBOA E | DAX Index vs. FUYO GENERAL LEASE | DAX Index vs. Live Nation Entertainment | DAX Index vs. Transport International Holdings |
| SSgA SPDR vs. UBS Fund Solutions | SSgA SPDR vs. Xtrackers II | SSgA SPDR vs. Xtrackers Nikkei 225 | SSgA SPDR vs. iShares VII PLC |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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