Correlation Between SBF 120 and SSgA SPDR
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By analyzing existing cross correlation between SBF 120 and SSgA SPDR ETFs, you can compare the effects of market volatilities on SBF 120 and SSgA SPDR 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 SBF 120 with a short position of SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and SSgA SPDR.
Diversification Opportunities for SBF 120 and SSgA SPDR
Excellent diversification
The 3 months correlation between SBF and SSgA is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and SSgA SPDR ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSgA SPDR ETFs and SBF 120 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 SBF 120 are associated (or correlated) with SSgA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSgA SPDR ETFs has no effect on the direction of SBF 120 i.e., SBF 120 and SSgA SPDR go up and down completely randomly.
Pair Corralation between SBF 120 and SSgA SPDR
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the SSgA SPDR. In addition to that, SBF 120 is 10.53 times more volatile than SSgA SPDR ETFs. It trades about -0.08 of its total potential returns per unit of risk. SSgA SPDR ETFs is currently generating about 0.31 per unit of volatility. If you would invest 3,008 in SSgA SPDR ETFs on September 1, 2024 and sell it today you would earn a total of 17.00 from holding SSgA SPDR ETFs or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SBF 120 vs. SSgA SPDR ETFs
Performance |
| Timeline |
SBF 120 and SSgA SPDR Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
SSgA SPDR ETFs
Pair trading matchups for SSgA SPDR
Pair Trading with SBF 120 and SSgA SPDR
The main advantage of trading using opposite SBF 120 and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, SSgA SPDR 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 SSgA SPDR will offset losses from the drop in SSgA SPDR's long position.| SBF 120 vs. Jacquet Metal Service | SBF 120 vs. Eutelsat Communications SA | SBF 120 vs. Hotelim Socit Anonyme | SBF 120 vs. Gaztransport Technigaz SAS |
| SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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