Correlation Between SPDR SP and Ossiam Bloomberg
Can any of the company-specific risk be diversified away by investing in both SPDR SP and Ossiam Bloomberg 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 SP and Ossiam Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP 500 and Ossiam Bloomberg USA, you can compare the effects of market volatilities on SPDR SP and Ossiam Bloomberg 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 SP with a short position of Ossiam Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and Ossiam Bloomberg.
Diversification Opportunities for SPDR SP and Ossiam Bloomberg
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and Ossiam is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP 500 and Ossiam Bloomberg USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ossiam Bloomberg USA and SPDR SP 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 SP 500 are associated (or correlated) with Ossiam Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ossiam Bloomberg USA has no effect on the direction of SPDR SP i.e., SPDR SP and Ossiam Bloomberg go up and down completely randomly.
Pair Corralation between SPDR SP and Ossiam Bloomberg
Assuming the 90 days trading horizon SPDR SP 500 is expected to generate 1.08 times more return on investment than Ossiam Bloomberg. However, SPDR SP is 1.08 times more volatile than Ossiam Bloomberg USA. It trades about 0.16 of its potential returns per unit of risk. Ossiam Bloomberg USA is currently generating about 0.14 per unit of risk. If you would invest 48,162 in SPDR SP 500 on September 2, 2024 and sell it today you would earn a total of 9,058 from holding SPDR SP 500 or generate 18.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SP 500 vs. Ossiam Bloomberg USA
Performance |
| Timeline |
| SPDR SP 500 |
| Ossiam Bloomberg USA |
SPDR SP and Ossiam Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and Ossiam Bloomberg
The main advantage of trading using opposite SPDR SP and Ossiam Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, Ossiam Bloomberg 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 Ossiam Bloomberg will offset losses from the drop in Ossiam Bloomberg's long position.| SPDR SP vs. Lyxor MSCI China | SPDR SP vs. Manitou BF SA | SPDR SP vs. Granite 3x LVMH | SPDR SP vs. 21Shares Polkadot ETP |
| Ossiam Bloomberg vs. Lyxor UCITS Japan | Ossiam Bloomberg vs. Lyxor UCITS Japan | Ossiam Bloomberg vs. Lyxor UCITS Stoxx | Ossiam Bloomberg vs. Amundi CAC 40 |
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.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |