Correlation Between SSGA Active and IShares National
Can any of the company-specific risk be diversified away by investing in both SSGA Active and IShares National 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 SSGA Active and IShares National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSGA Active Trust and iShares National Muni, you can compare the effects of market volatilities on SSGA Active and IShares National 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 SSGA Active with a short position of IShares National. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSGA Active and IShares National.
Diversification Opportunities for SSGA Active and IShares National
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between SSGA and IShares is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding SSGA Active Trust and iShares National Muni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares National Muni and SSGA Active 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 SSGA Active Trust are associated (or correlated) with IShares National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares National Muni has no effect on the direction of SSGA Active i.e., SSGA Active and IShares National go up and down completely randomly.
Pair Corralation between SSGA Active and IShares National
Given the investment horizon of 90 days SSGA Active is expected to generate 1.6 times less return on investment than IShares National. But when comparing it to its historical volatility, SSGA Active Trust is 3.13 times less risky than IShares National. It trades about 0.35 of its potential returns per unit of risk. iShares National Muni is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 10,668 in iShares National Muni on August 30, 2024 and sell it today you would earn a total of 161.00 from holding iShares National Muni or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSGA Active Trust vs. iShares National Muni
Performance |
| Timeline |
| SSGA Active Trust |
| iShares National Muni |
SSGA Active and IShares National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSGA Active and IShares National
The main advantage of trading using opposite SSGA Active and IShares National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSGA Active position performs unexpectedly, IShares National 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 IShares National will offset losses from the drop in IShares National's long position.| SSGA Active vs. SPDR Bloomberg Barclays | SSGA Active vs. SPDR Blackstone Senior | SSGA Active vs. SSGA Active Trust | SSGA Active vs. SPDR Series Trust |
| IShares National vs. iShares JP Morgan | IShares National vs. iShares iBoxx Investment | IShares National vs. SPDR Nuveen Bloomberg | IShares National vs. VanEck High Yield |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |