Correlation Between State Street and Ge S
Can any of the company-specific risk be diversified away by investing in both State Street and Ge S 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 State Street and Ge S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street Core and Ge S Us, you can compare the effects of market volatilities on State Street and Ge S 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 State Street with a short position of Ge S. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Ge S.
Diversification Opportunities for State Street and Ge S
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between State and GESSX is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding State Street Core and Ge S Us in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ge S Us and State Street 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 State Street Core are associated (or correlated) with Ge S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ge S Us has no effect on the direction of State Street i.e., State Street and Ge S go up and down completely randomly.
Pair Corralation between State Street and Ge S
If you would invest 8,520 in State Street Core on August 26, 2024 and sell it today you would earn a total of 178.00 from holding State Street Core or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
State Street Core vs. Ge S Us
Performance |
| Timeline |
| State Street Core |
| Ge S Us |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
State Street and Ge S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Street and Ge S
The main advantage of trading using opposite State Street and Ge S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street position performs unexpectedly, Ge S 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 Ge S will offset losses from the drop in Ge S's long position.| State Street vs. Franklin Emerging Market | State Street vs. Ep Emerging Markets | State Street vs. Origin Emerging Markets | State Street vs. Investec Emerging Markets |
| Ge S vs. Balanced Fund Retail | Ge S vs. Gmo Global Equity | Ge S vs. Scharf Fund Retail | Ge S vs. Artisan Select Equity |
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.
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