Correlation Between SPDR SSGA and Impact Shares
Can any of the company-specific risk be diversified away by investing in both SPDR SSGA and Impact Shares 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 Impact Shares 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 Impact Shares YWCA, you can compare the effects of market volatilities on SPDR SSGA and Impact Shares 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 Impact Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SSGA and Impact Shares.
Diversification Opportunities for SPDR SSGA and Impact Shares
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and Impact is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SSGA Gender and Impact Shares YWCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impact Shares YWCA 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 Impact Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impact Shares YWCA has no effect on the direction of SPDR SSGA i.e., SPDR SSGA and Impact Shares go up and down completely randomly.
Pair Corralation between SPDR SSGA and Impact Shares
Considering the 90-day investment horizon SPDR SSGA Gender is expected to generate 0.96 times more return on investment than Impact Shares. However, SPDR SSGA Gender is 1.04 times less risky than Impact Shares. It trades about 0.32 of its potential returns per unit of risk. Impact Shares YWCA is currently generating about 0.24 per unit of risk. If you would invest 11,490 in SPDR SSGA Gender on August 31, 2024 and sell it today you would earn a total of 634.00 from holding SPDR SSGA Gender or generate 5.52% 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. Impact Shares YWCA
Performance |
| Timeline |
| SPDR SSGA Gender |
| Impact Shares YWCA |
SPDR SSGA and Impact Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SSGA and Impact Shares
The main advantage of trading using opposite SPDR SSGA and Impact Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SSGA position performs unexpectedly, Impact Shares 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 Impact Shares will offset losses from the drop in Impact Shares' 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 |
| Impact Shares vs. Salon City | Impact Shares vs. Innovator ETFs Trust | Impact Shares vs. Impact Shares NAACP | Impact Shares vs. Searchlight Minerals Corp |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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