Correlation Between State Street and Global Fixed
Can any of the company-specific risk be diversified away by investing in both State Street and Global Fixed 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 State Street and Global Fixed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street Master and Global Fixed Income, you can compare the effects of market volatilities on State Street and Global Fixed 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 State Street with a short position of Global Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Global Fixed.
Diversification Opportunities for State Street and Global Fixed
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between State and Global is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding State Street Master and Global Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Fixed Income and State Street 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 State Street Master are associated (or correlated) with Global Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Fixed Income has no effect on the direction of State Street i.e., State Street and Global Fixed go up and down completely randomly.
Pair Corralation between State Street and Global Fixed
If you would invest 523.00 in Global Fixed Income on November 3, 2024 and sell it today you would earn a total of 2.00 from holding Global Fixed Income or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
State Street Master vs. Global Fixed Income
Performance |
| Timeline |
| State Street Master |
| Global Fixed Income |
State Street and Global Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Street and Global Fixed
The main advantage of trading using opposite State Street and Global Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street position performs unexpectedly, Global Fixed 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 Global Fixed will offset losses from the drop in Global Fixed's long position.| State Street vs. Tiaa Cref Lifecycle Retirement | State Street vs. Transamerica Cleartrack Retirement | State Street vs. Calvert Moderate Allocation | State Street vs. Franklin Lifesmart Retirement |
| Global Fixed vs. Ms Global Fixed | Global Fixed vs. Ab Global Bond | Global Fixed vs. Dreyfusstandish Global Fixed | Global Fixed vs. Investec Global Franchise |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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