Correlation Between SSgA SPDR and Ekinops SA
Can any of the company-specific risk be diversified away by investing in both SSgA SPDR and Ekinops SA 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 Ekinops SA 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 Ekinops SA, you can compare the effects of market volatilities on SSgA SPDR and Ekinops SA 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 Ekinops SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSgA SPDR and Ekinops SA.
Diversification Opportunities for SSgA SPDR and Ekinops SA
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SSgA and Ekinops is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding SSgA SPDR ETFs and Ekinops SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekinops SA 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 Ekinops SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekinops SA has no effect on the direction of SSgA SPDR i.e., SSgA SPDR and Ekinops SA go up and down completely randomly.
Pair Corralation between SSgA SPDR and Ekinops SA
Assuming the 90 days trading horizon SSgA SPDR ETFs is expected to generate 0.63 times more return on investment than Ekinops SA. However, SSgA SPDR ETFs is 1.59 times less risky than Ekinops SA. It trades about 0.24 of its potential returns per unit of risk. Ekinops SA is currently generating about -0.08 per unit of risk. If you would invest 21,935 in SSgA SPDR ETFs on December 1, 2024 and sell it today you would earn a total of 710.00 from holding SSgA SPDR ETFs or generate 3.24% 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. Ekinops SA
Performance |
| Timeline |
| SSgA SPDR ETFs |
| Ekinops SA |
SSgA SPDR and Ekinops SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSgA SPDR and Ekinops SA
The main advantage of trading using opposite SSgA SPDR and Ekinops SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSgA SPDR position performs unexpectedly, Ekinops SA 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 Ekinops SA will offset losses from the drop in Ekinops SA's long position.| SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs |
| Ekinops SA vs. Claranova SE | Ekinops SA vs. Derichebourg | Ekinops SA vs. Mersen SA | Ekinops SA vs. BigBen Interactive |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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