Correlation Between SSgA and IShares SP
Can any of the company-specific risk be diversified away by investing in both SSgA and IShares SP 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 and IShares SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSgA and iShares SP Mid Cap, you can compare the effects of market volatilities on SSgA and IShares SP 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 with a short position of IShares SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSgA and IShares SP.
Diversification Opportunities for SSgA and IShares SP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SSgA and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SSgA and iShares SP Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SP Mid and SSgA 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 are associated (or correlated) with IShares SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SP Mid has no effect on the direction of SSgA i.e., SSgA and IShares SP go up and down completely randomly.
Pair Corralation between SSgA and IShares SP
If you would invest (100.00) in SSgA on January 20, 2024 and sell it today you would earn a total of 100.00 from holding SSgA or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SSgA vs. iShares SP Mid Cap
Performance |
| Timeline |
| SSgA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares SP Mid |
SSgA and IShares SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSgA and IShares SP
The main advantage of trading using opposite SSgA and IShares SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSgA position performs unexpectedly, IShares SP 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 IShares SP will offset losses from the drop in IShares SP's long position.| SSgA vs. Vanguard Total Stock | SSgA vs. SPDR SP 500 | SSgA vs. iShares Core SP | SSgA vs. Vanguard Total Bond |
| IShares SP vs. Motley Fool Global | IShares SP vs. The RBB Fund | IShares SP vs. Aquagold International | IShares SP vs. Thrivent High Yield |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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