Correlation Between Multi Units and SSgA SPDR
Can any of the company-specific risk be diversified away by investing in both Multi Units and SSgA SPDR 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 Multi Units and SSgA SPDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Units France and SSgA SPDR ETFs, you can compare the effects of market volatilities on Multi Units 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 Multi Units with a short position of SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Units and SSgA SPDR.
Diversification Opportunities for Multi Units and SSgA SPDR
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Multi and SSgA is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Multi Units France 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 Multi Units 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 Multi Units France 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 Multi Units i.e., Multi Units and SSgA SPDR go up and down completely randomly.
Pair Corralation between Multi Units and SSgA SPDR
Assuming the 90 days trading horizon Multi Units France is expected to under-perform the SSgA SPDR. In addition to that, Multi Units is 1.16 times more volatile than SSgA SPDR ETFs. It trades about -0.19 of its total potential returns per unit of risk. SSgA SPDR ETFs is currently generating about 0.23 per unit of volatility. If you would invest 21,825 in SSgA SPDR ETFs on November 29, 2024 and sell it today you would earn a total of 755.00 from holding SSgA SPDR ETFs or generate 3.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Units France vs. SSgA SPDR ETFs
Performance |
| Timeline |
| Multi Units France |
| SSgA SPDR ETFs |
Multi Units and SSgA SPDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Units and SSgA SPDR
The main advantage of trading using opposite Multi Units and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Units 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.| Multi Units vs. Lyxor MSCI China | Multi Units vs. Lyxor MSCI Brazil | Multi Units vs. MULTI UNITS LUXEMBOURG | Multi Units vs. Multi Units France |
| SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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