Correlation Between Ssga Sp and Swan Defined
Can any of the company-specific risk be diversified away by investing in both Ssga Sp and Swan Defined 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 Sp and Swan Defined into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssga Sp 500 and Swan Defined Risk, you can compare the effects of market volatilities on Ssga Sp and Swan Defined 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 Sp with a short position of Swan Defined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssga Sp and Swan Defined.
Diversification Opportunities for Ssga Sp and Swan Defined
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Ssga and Swan is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Ssga Sp 500 and Swan Defined Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swan Defined Risk and Ssga Sp 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 Sp 500 are associated (or correlated) with Swan Defined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swan Defined Risk has no effect on the direction of Ssga Sp i.e., Ssga Sp and Swan Defined go up and down completely randomly.
Pair Corralation between Ssga Sp and Swan Defined
Assuming the 90 days horizon Ssga Sp 500 is expected to generate 1.19 times more return on investment than Swan Defined. However, Ssga Sp is 1.19 times more volatile than Swan Defined Risk. It trades about 0.13 of its potential returns per unit of risk. Swan Defined Risk is currently generating about 0.11 per unit of risk. If you would invest 24,878 in Ssga Sp 500 on August 30, 2024 and sell it today you would earn a total of 3,528 from holding Ssga Sp 500 or generate 14.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssga Sp 500 vs. Swan Defined Risk
Performance |
| Timeline |
| Ssga Sp 500 |
| Swan Defined Risk |
Ssga Sp and Swan Defined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssga Sp and Swan Defined
The main advantage of trading using opposite Ssga Sp and Swan Defined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssga Sp position performs unexpectedly, Swan Defined 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 Swan Defined will offset losses from the drop in Swan Defined's long position.| Ssga Sp vs. State Street Target | Ssga Sp vs. State Street Target | Ssga Sp vs. Ssga International Stock | Ssga Sp vs. State Street Target |
| Swan Defined vs. Barings Active Short | Swan Defined vs. T Rowe Price | Swan Defined vs. Bbh Intermediate Municipal | Swan Defined vs. Blrc Sgy Mnp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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