Correlation Between T Rex and SPDR SSGA
Can any of the company-specific risk be diversified away by investing in both T Rex 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 T Rex and SPDR SSGA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Rex 2X Long and SPDR SSGA Fixed, you can compare the effects of market volatilities on T Rex 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 T Rex with a short position of SPDR SSGA. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Rex and SPDR SSGA.
Diversification Opportunities for T Rex and SPDR SSGA
Pay attention - limited upside
The 3 months correlation between NVDX and SPDR is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding T Rex 2X Long 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 T Rex 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 T Rex 2X Long 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 T Rex i.e., T Rex and SPDR SSGA go up and down completely randomly.
Pair Corralation between T Rex and SPDR SSGA
Given the investment horizon of 90 days T Rex 2X Long is expected to generate 15.51 times more return on investment than SPDR SSGA. However, T Rex is 15.51 times more volatile than SPDR SSGA Fixed. It trades about 0.14 of its potential returns per unit of risk. SPDR SSGA Fixed is currently generating about 0.04 per unit of risk. If you would invest 249.00 in T Rex 2X Long on September 2, 2024 and sell it today you would earn a total of 1,493 from holding T Rex 2X Long or generate 599.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 75.81% |
| Values | Daily Returns |
T Rex 2X Long vs. SPDR SSGA Fixed
Performance |
| Timeline |
| T Rex 2X |
| SPDR SSGA Fixed |
T Rex and SPDR SSGA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Rex and SPDR SSGA
The main advantage of trading using opposite T Rex and SPDR SSGA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Rex 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.| T Rex vs. Tidal Trust II | T Rex vs. Tidal Trust II | T Rex vs. Direxion Daily META | T Rex vs. Direxion Daily META |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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