Correlation Between SSgA SPDR and Amundi Index
Can any of the company-specific risk be diversified away by investing in both SSgA SPDR and Amundi Index 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 Amundi Index 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 Amundi Index Solutions, you can compare the effects of market volatilities on SSgA SPDR and Amundi Index 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 Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSgA SPDR and Amundi Index.
Diversification Opportunities for SSgA SPDR and Amundi Index
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between SSgA and Amundi is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding SSgA SPDR ETFs and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions 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 Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of SSgA SPDR i.e., SSgA SPDR and Amundi Index go up and down completely randomly.
Pair Corralation between SSgA SPDR and Amundi Index
Assuming the 90 days trading horizon SSgA SPDR ETFs is expected to under-perform the Amundi Index. But the etf apears to be less risky and, when comparing its historical volatility, SSgA SPDR ETFs is 1.29 times less risky than Amundi Index. The etf trades about -0.02 of its potential returns per unit of risk. The Amundi Index Solutions is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 519.00 in Amundi Index Solutions on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Amundi Index Solutions or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSgA SPDR ETFs vs. Amundi Index Solutions
Performance |
| Timeline |
| SSgA SPDR ETFs |
| Amundi Index Solutions |
SSgA SPDR and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSgA SPDR and Amundi Index
The main advantage of trading using opposite SSgA SPDR and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSgA SPDR position performs unexpectedly, Amundi Index 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 Amundi Index will offset losses from the drop in Amundi Index's long position.| SSgA SPDR vs. Amundi Index Solutions | SSgA SPDR vs. Manitou BF SA | SSgA SPDR vs. 21Shares Polkadot ETP | SSgA SPDR vs. Ekinops SA |
| Amundi Index vs. Manitou BF SA | Amundi Index vs. 21Shares Polkadot ETP | Amundi Index vs. Ekinops SA | Amundi Index vs. Orapi SA |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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