Correlation Between State Street and Rbb Fund
Can any of the company-specific risk be diversified away by investing in both State Street and Rbb Fund 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 Rbb Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street Income and Rbb Fund , you can compare the effects of market volatilities on State Street and Rbb Fund 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 Rbb Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Rbb Fund.
Diversification Opportunities for State Street and Rbb Fund
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between State and Rbb is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding State Street Income and Rbb Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbb Fund 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 Income are associated (or correlated) with Rbb Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbb Fund has no effect on the direction of State Street i.e., State Street and Rbb Fund go up and down completely randomly.
Pair Corralation between State Street and Rbb Fund
Assuming the 90 days horizon State Street is expected to generate 1.72 times less return on investment than Rbb Fund. In addition to that, State Street is 1.72 times more volatile than Rbb Fund . It trades about 0.05 of its total potential returns per unit of risk. Rbb Fund is currently generating about 0.14 per unit of volatility. If you would invest 865.00 in Rbb Fund on October 8, 2025 and sell it today you would earn a total of 139.00 from holding Rbb Fund or generate 16.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Street Income vs. Rbb Fund
Performance |
| Timeline |
| State Street Income |
| Rbb Fund |
State Street and Rbb Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Street and Rbb Fund
The main advantage of trading using opposite State Street and Rbb Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street position performs unexpectedly, Rbb Fund 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 Rbb Fund will offset losses from the drop in Rbb Fund's long position.| State Street vs. James Balanced Golden | State Street vs. World Precious Minerals | State Street vs. Oppenheimer Gold Special | State Street vs. Short Precious Metals |
| Rbb Fund vs. First Eagle Gold | Rbb Fund vs. Sprott Gold Equity | Rbb Fund vs. Franklin Gold Precious | Rbb Fund vs. Short Precious Metals |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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