Correlation Between SPDR Blackstone and SSGA Active
Can any of the company-specific risk be diversified away by investing in both SPDR Blackstone and SSGA Active 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 Blackstone and SSGA Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Blackstone Senior and SSGA Active Trust, you can compare the effects of market volatilities on SPDR Blackstone and SSGA Active 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 Blackstone with a short position of SSGA Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Blackstone and SSGA Active.
Diversification Opportunities for SPDR Blackstone and SSGA Active
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and SSGA is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Blackstone Senior and SSGA Active Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSGA Active Trust and SPDR Blackstone 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 Blackstone Senior are associated (or correlated) with SSGA Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSGA Active Trust has no effect on the direction of SPDR Blackstone i.e., SPDR Blackstone and SSGA Active go up and down completely randomly.
Pair Corralation between SPDR Blackstone and SSGA Active
Given the investment horizon of 90 days SPDR Blackstone Senior is expected to generate 1.07 times more return on investment than SSGA Active. However, SPDR Blackstone is 1.07 times more volatile than SSGA Active Trust. It trades about 0.28 of its potential returns per unit of risk. SSGA Active Trust is currently generating about 0.29 per unit of risk. If you would invest 4,162 in SPDR Blackstone Senior on August 29, 2024 and sell it today you would earn a total of 34.00 from holding SPDR Blackstone Senior or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Blackstone Senior vs. SSGA Active Trust
Performance |
| Timeline |
| SPDR Blackstone Senior |
| SSGA Active Trust |
SPDR Blackstone and SSGA Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Blackstone and SSGA Active
The main advantage of trading using opposite SPDR Blackstone and SSGA Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Blackstone position performs unexpectedly, SSGA Active 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 Active will offset losses from the drop in SSGA Active's long position.| SPDR Blackstone vs. Invesco Senior Loan | SPDR Blackstone vs. First Trust Senior | SPDR Blackstone vs. SPDR Bloomberg Short | SPDR Blackstone vs. SPDR Bloomberg Investment |
| SSGA Active vs. SPDR Bloomberg Barclays | SSGA Active vs. SPDR Blackstone Senior | SSGA Active vs. SSGA Active Trust | SSGA Active vs. SPDR Series Trust |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |