Correlation Between SPDR SSGA and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both SPDR SSGA and IShares 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 SPDR SSGA and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SSGA Gender and iShares MSCI KLD, you can compare the effects of market volatilities on SPDR SSGA and IShares 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 SPDR SSGA with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SSGA and IShares MSCI.
Diversification Opportunities for SPDR SSGA and IShares MSCI
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and IShares is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SSGA Gender and iShares MSCI KLD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI KLD and SPDR SSGA 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 SPDR SSGA Gender are associated (or correlated) with IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI KLD has no effect on the direction of SPDR SSGA i.e., SPDR SSGA and IShares MSCI go up and down completely randomly.
Pair Corralation between SPDR SSGA and IShares MSCI
Considering the 90-day investment horizon SPDR SSGA Gender is expected to generate 0.9 times more return on investment than IShares MSCI. However, SPDR SSGA Gender is 1.11 times less risky than IShares MSCI. It trades about 0.13 of its potential returns per unit of risk. iShares MSCI KLD is currently generating about 0.12 per unit of risk. If you would invest 8,444 in SPDR SSGA Gender on September 2, 2024 and sell it today you would earn a total of 3,680 from holding SPDR SSGA Gender or generate 43.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SSGA Gender vs. iShares MSCI KLD
Performance |
| Timeline |
| SPDR SSGA Gender |
| iShares MSCI KLD |
SPDR SSGA and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SSGA and IShares MSCI
The main advantage of trading using opposite SPDR SSGA and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SSGA position performs unexpectedly, IShares 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 IShares MSCI will offset losses from the drop in IShares MSCI's long position.| SPDR SSGA vs. iShares MSCI ACWI | SPDR SSGA vs. iShares MSCI USA | SPDR SSGA vs. SPDR SP 500 | SPDR SSGA vs. iShares MSCI KLD |
| IShares MSCI vs. iShares MSCI USA | IShares MSCI vs. iShares ESG Aware | IShares MSCI vs. iShares MSCI ACWI | IShares MSCI vs. iShares ESG Aware |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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