Correlation Between Sygnum Platform and SPDR MSCI
Can any of the company-specific risk be diversified away by investing in both Sygnum Platform and SPDR MSCI 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 Sygnum Platform and SPDR MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sygnum Platform Winners and SPDR MSCI EM, you can compare the effects of market volatilities on Sygnum Platform and SPDR MSCI 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 Sygnum Platform with a short position of SPDR MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sygnum Platform and SPDR MSCI.
Diversification Opportunities for Sygnum Platform and SPDR MSCI
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sygnum and SPDR is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Sygnum Platform Winners and SPDR MSCI EM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR MSCI EM and Sygnum Platform 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 Sygnum Platform Winners are associated (or correlated) with SPDR MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR MSCI EM has no effect on the direction of Sygnum Platform i.e., Sygnum Platform and SPDR MSCI go up and down completely randomly.
Pair Corralation between Sygnum Platform and SPDR MSCI
Assuming the 90 days trading horizon Sygnum Platform Winners is expected to generate 5.81 times more return on investment than SPDR MSCI. However, Sygnum Platform is 5.81 times more volatile than SPDR MSCI EM. It trades about 0.02 of its potential returns per unit of risk. SPDR MSCI EM is currently generating about 0.06 per unit of risk. If you would invest 2,158 in Sygnum Platform Winners on October 31, 2024 and sell it today you would earn a total of 2.00 from holding Sygnum Platform Winners or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sygnum Platform Winners vs. SPDR MSCI EM
Performance |
| Timeline |
| Sygnum Platform Winners |
| SPDR MSCI EM |
Sygnum Platform and SPDR MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sygnum Platform and SPDR MSCI
The main advantage of trading using opposite Sygnum Platform and SPDR MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sygnum Platform position performs unexpectedly, SPDR MSCI 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 MSCI will offset losses from the drop in SPDR MSCI's long position.| Sygnum Platform vs. Vanguard FTSE Emerging | Sygnum Platform vs. UBS ETF MSCI | Sygnum Platform vs. VanEck Solana ETN | Sygnum Platform vs. iShares Corp Bond |
| SPDR MSCI vs. SPDR MSCI Europe | SPDR MSCI vs. SPDR SP Utilities | SPDR MSCI vs. SPDR MSCI Europe | SPDR MSCI vs. SPDR Bloomberg Global |
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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