Correlation Between SPDR SSGA and IShares ESG
Can any of the company-specific risk be diversified away by investing in both SPDR SSGA and IShares ESG 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 ESG 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 ESG Aware, you can compare the effects of market volatilities on SPDR SSGA and IShares ESG 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 ESG. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SSGA and IShares ESG.
Diversification Opportunities for SPDR SSGA and IShares ESG
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SPDR and IShares is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SSGA Gender and iShares ESG Aware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares ESG Aware 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 ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares ESG Aware has no effect on the direction of SPDR SSGA i.e., SPDR SSGA and IShares ESG go up and down completely randomly.
Pair Corralation between SPDR SSGA and IShares ESG
Considering the 90-day investment horizon SPDR SSGA Gender is expected to generate 0.77 times more return on investment than IShares ESG. However, SPDR SSGA Gender is 1.3 times less risky than IShares ESG. It trades about 0.13 of its potential returns per unit of risk. iShares ESG Aware is currently generating about 0.03 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 Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SSGA Gender vs. iShares ESG Aware
Performance |
| Timeline |
| SPDR SSGA Gender |
| iShares ESG Aware |
SPDR SSGA and IShares ESG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SSGA and IShares ESG
The main advantage of trading using opposite SPDR SSGA and IShares ESG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SSGA position performs unexpectedly, IShares ESG 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 ESG will offset losses from the drop in IShares ESG'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 ESG vs. iShares ESG Aware | IShares ESG vs. iShares ESG Aware | IShares ESG vs. iShares ESG Aware | IShares ESG vs. iShares ESG USD |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |