Correlation Between 70082LAB3 and Ssga International
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By analyzing existing cross correlation between US70082LAB36 and Ssga International Stock, you can compare the effects of market volatilities on 70082LAB3 and Ssga International 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 70082LAB3 with a short position of Ssga International. Check out your portfolio center. Please also check ongoing floating volatility patterns of 70082LAB3 and Ssga International.
Diversification Opportunities for 70082LAB3 and Ssga International
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 70082LAB3 and Ssga is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding US70082LAB36 and Ssga International Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssga International Stock and 70082LAB3 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 US70082LAB36 are associated (or correlated) with Ssga International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssga International Stock has no effect on the direction of 70082LAB3 i.e., 70082LAB3 and Ssga International go up and down completely randomly.
Pair Corralation between 70082LAB3 and Ssga International
Assuming the 90 days trading horizon US70082LAB36 is expected to under-perform the Ssga International. In addition to that, 70082LAB3 is 2.36 times more volatile than Ssga International Stock. It trades about -0.21 of its total potential returns per unit of risk. Ssga International Stock is currently generating about -0.1 per unit of volatility. If you would invest 1,150 in Ssga International Stock on August 30, 2024 and sell it today you would lose (18.00) from holding Ssga International Stock or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 54.55% |
| Values | Daily Returns |
US70082LAB36 vs. Ssga International Stock
Performance |
| Timeline |
| US70082LAB36 |
| Ssga International Stock |
70082LAB3 and Ssga International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 70082LAB3 and Ssga International
The main advantage of trading using opposite 70082LAB3 and Ssga International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 70082LAB3 position performs unexpectedly, Ssga International 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 International will offset losses from the drop in Ssga International's long position.| 70082LAB3 vs. Where Food Comes | 70082LAB3 vs. ArcelorMittal SA ADR | 70082LAB3 vs. NH Foods Ltd | 70082LAB3 vs. Summit Environmental |
| Ssga International vs. HUMANA INC | Ssga International vs. Aquagold International | Ssga International vs. Barloworld Ltd ADR | Ssga International vs. Morningstar Unconstrained Allocation |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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