Correlation Between State Street and Ge Ss
Can any of the company-specific risk be diversified away by investing in both State Street and Ge Ss 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 Ss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street Institutional and Ge Ss Inc, you can compare the effects of market volatilities on State Street and Ge Ss 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 Ss. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Ge Ss.
Diversification Opportunities for State Street and Ge Ss
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between State and GESLX is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding State Street Institutional and Ge Ss Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ge Ss Inc 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 Institutional are associated (or correlated) with Ge Ss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ge Ss Inc has no effect on the direction of State Street i.e., State Street and Ge Ss go up and down completely randomly.
Pair Corralation between State Street and Ge Ss
If you would invest 1,882 in State Street Institutional on August 29, 2024 and sell it today you would earn a total of 164.00 from holding State Street Institutional or generate 8.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
State Street Institutional vs. Ge Ss Inc
Performance |
| Timeline |
| State Street Institu |
| Ge Ss Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
State Street and Ge Ss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Street and Ge Ss
The main advantage of trading using opposite State Street and Ge Ss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street position performs unexpectedly, Ge Ss 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 Ss will offset losses from the drop in Ge Ss' long position.| State Street vs. State Street Institutional | State Street vs. Harbor Small Cap | State Street vs. Hartford Schroders Small | State Street vs. Calvert Small Cap |
| Ge Ss vs. Sterling Capital Short | Ge Ss vs. Nebraska Municipal Fund | Ge Ss vs. Blrc Sgy Mnp | Ge Ss vs. Shelton Emerging Markets |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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