Correlation Between SSgA SPDR and SSgA SPDR
Can any of the company-specific risk be diversified away by investing in both SSgA SPDR and SSgA SPDR 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 SSgA SPDR and SSgA SPDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSgA SPDR ETFs and SSgA SPDR ETFs, you can compare the effects of market volatilities on SSgA SPDR and SSgA SPDR 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 SSgA SPDR with a short position of SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSgA SPDR and SSgA SPDR.
Diversification Opportunities for SSgA SPDR and SSgA SPDR
Weak diversification
The 3 months correlation between SSgA and SSgA is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding SSgA SPDR ETFs and SSgA SPDR ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSgA SPDR ETFs and SSgA SPDR 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 SSgA SPDR ETFs are associated (or correlated) with SSgA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSgA SPDR ETFs has no effect on the direction of SSgA SPDR i.e., SSgA SPDR and SSgA SPDR go up and down completely randomly.
Pair Corralation between SSgA SPDR and SSgA SPDR
Assuming the 90 days horizon SSgA SPDR is expected to generate 1.13 times less return on investment than SSgA SPDR. In addition to that, SSgA SPDR is 1.51 times more volatile than SSgA SPDR ETFs. It trades about 0.06 of its total potential returns per unit of risk. SSgA SPDR ETFs is currently generating about 0.11 per unit of volatility. If you would invest 5,365 in SSgA SPDR ETFs on August 30, 2024 and sell it today you would earn a total of 1,091 from holding SSgA SPDR ETFs or generate 20.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 46.06% |
| Values | Daily Returns |
SSgA SPDR ETFs vs. SSgA SPDR ETFs
Performance |
| Timeline |
| SSgA SPDR ETFs |
| SSgA SPDR ETFs |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SSgA SPDR and SSgA SPDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSgA SPDR and SSgA SPDR
The main advantage of trading using opposite SSgA SPDR and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSgA SPDR position performs unexpectedly, SSgA SPDR 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 SPDR will offset losses from the drop in SSgA SPDR's long position.| SSgA SPDR vs. Vanguard Total Stock | SSgA SPDR vs. SPDR SP 500 | SSgA SPDR vs. iShares Core SP | SSgA SPDR vs. Vanguard Total Bond |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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