Correlation Between Xtrackers and SSgA SPDR
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By analyzing existing cross correlation between Xtrackers II and SSgA SPDR SP, you can compare the effects of market volatilities on Xtrackers and SSgA SPDR 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 Xtrackers with a short position of SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers and SSgA SPDR.
Diversification Opportunities for Xtrackers and SSgA SPDR
Pay attention - limited upside
The 3 months correlation between Xtrackers and SSgA is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers II and SSgA SPDR SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSgA SPDR SP and Xtrackers 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 Xtrackers II are associated (or correlated) with SSgA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSgA SPDR SP has no effect on the direction of Xtrackers i.e., Xtrackers and SSgA SPDR go up and down completely randomly.
Pair Corralation between Xtrackers and SSgA SPDR
Assuming the 90 days trading horizon Xtrackers II is expected to under-perform the SSgA SPDR. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers II is 3.63 times less risky than SSgA SPDR. The etf trades about -0.01 of its potential returns per unit of risk. The SSgA SPDR SP is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9,530 in SSgA SPDR SP on September 4, 2024 and sell it today you would earn a total of 305.00 from holding SSgA SPDR SP or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Xtrackers II vs. SSgA SPDR SP
Performance |
| Timeline |
| Xtrackers II |
| SSgA SPDR SP |
Xtrackers and SSgA SPDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers and SSgA SPDR
The main advantage of trading using opposite Xtrackers and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers position performs unexpectedly, SSgA SPDR 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 SPDR will offset losses from the drop in SSgA SPDR's long position.| Xtrackers vs. UBS Fund Solutions | Xtrackers vs. Xtrackers Nikkei 225 | Xtrackers vs. iShares VII PLC | Xtrackers vs. SPDR Gold Shares |
| SSgA SPDR vs. UBS Fund Solutions | SSgA SPDR vs. Xtrackers II | SSgA SPDR vs. Xtrackers Nikkei 225 | SSgA SPDR vs. iShares VII PLC |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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