Correlation Between Tema ETF and SPDR SSgA
Can any of the company-specific risk be diversified away by investing in both Tema ETF and SPDR SSgA 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 Tema ETF and SPDR SSgA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tema ETF Trust and SPDR SSgA Ultra, you can compare the effects of market volatilities on Tema ETF and SPDR SSgA 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 Tema ETF with a short position of SPDR SSgA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tema ETF and SPDR SSgA.
Diversification Opportunities for Tema ETF and SPDR SSgA
Very good diversification
The 3 months correlation between Tema and SPDR is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Tema ETF Trust and SPDR SSgA Ultra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SSgA Ultra and Tema ETF 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 Tema ETF Trust are associated (or correlated) with SPDR SSgA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SSgA Ultra has no effect on the direction of Tema ETF i.e., Tema ETF and SPDR SSgA go up and down completely randomly.
Pair Corralation between Tema ETF and SPDR SSgA
Considering the 90-day investment horizon Tema ETF Trust is expected to under-perform the SPDR SSgA. In addition to that, Tema ETF is 13.79 times more volatile than SPDR SSgA Ultra. It trades about -0.03 of its total potential returns per unit of risk. SPDR SSgA Ultra is currently generating about 0.31 per unit of volatility. If you would invest 3,753 in SPDR SSgA Ultra on August 28, 2024 and sell it today you would earn a total of 305.00 from holding SPDR SSgA Ultra or generate 8.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tema ETF Trust vs. SPDR SSgA Ultra
Performance |
| Timeline |
| Tema ETF Trust |
| SPDR SSgA Ultra |
Tema ETF and SPDR SSgA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tema ETF and SPDR SSgA
The main advantage of trading using opposite Tema ETF and SPDR SSgA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tema ETF position performs unexpectedly, SPDR SSgA 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 SPDR SSgA will offset losses from the drop in SPDR SSgA's long position.| Tema ETF vs. VanEck Pharmaceutical ETF | Tema ETF vs. VanEck Biotech ETF | Tema ETF vs. VanEck Oil Services | Tema ETF vs. iShares Transportation Average |
| SPDR SSgA vs. SPDR Bloomberg Investment | SPDR SSgA vs. SPDR Bloomberg 1 10 | SPDR SSgA vs. iShares Short Maturity | SPDR SSgA vs. Invesco Ultra Short |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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