Correlation Between Chia and SPDR SSGA
Can any of the company-specific risk be diversified away by investing in both Chia and SPDR SSGA 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 Chia and SPDR SSGA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chia and SPDR SSGA My2028, you can compare the effects of market volatilities on Chia and SPDR SSGA 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 Chia with a short position of SPDR SSGA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chia and SPDR SSGA.
Diversification Opportunities for Chia and SPDR SSGA
Poor diversification
The 3 months correlation between Chia and SPDR is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Chia and SPDR SSGA My2028 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SSGA My2028 and Chia 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 Chia are associated (or correlated) with SPDR SSGA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SSGA My2028 has no effect on the direction of Chia i.e., Chia and SPDR SSGA go up and down completely randomly.
Pair Corralation between Chia and SPDR SSGA
Assuming the 90 days trading horizon Chia is expected to under-perform the SPDR SSGA. In addition to that, Chia is 48.95 times more volatile than SPDR SSGA My2028. It trades about -0.08 of its total potential returns per unit of risk. SPDR SSGA My2028 is currently generating about 0.08 per unit of volatility. If you would invest 2,456 in SPDR SSGA My2028 on October 25, 2024 and sell it today you would earn a total of 5.00 from holding SPDR SSGA My2028 or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Chia vs. SPDR SSGA My2028
Performance |
| Timeline |
| Chia |
| SPDR SSGA My2028 |
Chia and SPDR SSGA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chia and SPDR SSGA
The main advantage of trading using opposite Chia and SPDR SSGA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chia position performs unexpectedly, SPDR SSGA 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 SPDR SSGA will offset losses from the drop in SPDR SSGA's long position.The idea behind Chia and SPDR SSGA My2028 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| SPDR SSGA vs. VanEck Vectors Moodys | SPDR SSGA vs. Valued Advisers Trust | SPDR SSGA vs. Xtrackers California Municipal | SPDR SSGA vs. Principal Exchange Traded Funds |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |