Correlation Between SSgA SPDR and Xtrackers MSCI
Can any of the company-specific risk be diversified away by investing in both SSgA SPDR and Xtrackers 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 SSgA SPDR and Xtrackers MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSgA SPDR ETFs and Xtrackers MSCI Europe, you can compare the effects of market volatilities on SSgA SPDR and Xtrackers 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 SSgA SPDR with a short position of Xtrackers MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSgA SPDR and Xtrackers MSCI.
Diversification Opportunities for SSgA SPDR and Xtrackers MSCI
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SSgA and Xtrackers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SSgA SPDR ETFs and Xtrackers MSCI Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers MSCI Europe and SSgA SPDR 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 SSgA SPDR ETFs are associated (or correlated) with Xtrackers MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers MSCI Europe has no effect on the direction of SSgA SPDR i.e., SSgA SPDR and Xtrackers MSCI go up and down completely randomly.
Pair Corralation between SSgA SPDR and Xtrackers MSCI
If you would invest 5,961 in SSgA SPDR ETFs on August 29, 2024 and sell it today you would earn a total of 714.00 from holding SSgA SPDR ETFs or generate 11.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SSgA SPDR ETFs vs. Xtrackers MSCI Europe
Performance |
| Timeline |
| SSgA SPDR ETFs |
| Xtrackers MSCI Europe |
SSgA SPDR and Xtrackers MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSgA SPDR and Xtrackers MSCI
The main advantage of trading using opposite SSgA SPDR and Xtrackers MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSgA SPDR position performs unexpectedly, Xtrackers 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 Xtrackers MSCI will offset losses from the drop in Xtrackers MSCI's long position.| SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs |
| Xtrackers MSCI vs. Amundi Index Solutions | Xtrackers MSCI vs. Multi Units Luxembourg | Xtrackers MSCI vs. iShares Digital Entertainment | Xtrackers MSCI vs. Amundi Index Solutions |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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