Correlation Between Roundhill Investments and SPDR SSGA
Can any of the company-specific risk be diversified away by investing in both Roundhill Investments 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 Roundhill Investments and SPDR SSGA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roundhill Investments and SPDR SSGA Fixed, you can compare the effects of market volatilities on Roundhill Investments 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 Roundhill Investments with a short position of SPDR SSGA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roundhill Investments and SPDR SSGA.
Diversification Opportunities for Roundhill Investments and SPDR SSGA
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Roundhill and SPDR is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Roundhill Investments and SPDR SSGA Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SSGA Fixed and Roundhill Investments 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 Roundhill Investments 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 Fixed has no effect on the direction of Roundhill Investments i.e., Roundhill Investments and SPDR SSGA go up and down completely randomly.
Pair Corralation between Roundhill Investments and SPDR SSGA
If you would invest 2,576 in SPDR SSGA Fixed on September 4, 2024 and sell it today you would earn a total of 22.00 from holding SPDR SSGA Fixed or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Roundhill Investments vs. SPDR SSGA Fixed
Performance |
| Timeline |
| Roundhill Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SPDR SSGA Fixed |
Roundhill Investments and SPDR SSGA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roundhill Investments and SPDR SSGA
The main advantage of trading using opposite Roundhill Investments and SPDR SSGA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roundhill Investments 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.| Roundhill Investments vs. iShares Russell Mid Cap | Roundhill Investments vs. iShares SP Mid Cap | Roundhill Investments vs. SPDR Kensho New | Roundhill Investments vs. iShares Morningstar Mid Cap |
| SPDR SSGA vs. SPDR SSGA Sector | SPDR SSGA vs. SPDR DoubleLine Emerging | SPDR SSGA vs. SPDR DoubleLine Short | SPDR SSGA vs. SPDR SSgA Ultra |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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