Correlation Between SSgA and Invesco SP
Can any of the company-specific risk be diversified away by investing in both SSgA and Invesco 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 Invesco SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSgA and Invesco SP MidCap, you can compare the effects of market volatilities on SSgA and Invesco 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 Invesco SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSgA and Invesco SP.
Diversification Opportunities for SSgA and Invesco SP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SSgA and Invesco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SSgA and Invesco SP MidCap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco SP MidCap 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 Invesco SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco SP MidCap has no effect on the direction of SSgA i.e., SSgA and Invesco SP go up and down completely randomly.
Pair Corralation between SSgA and Invesco SP
If you would invest 3,275 in Invesco SP MidCap on January 25, 2024 and sell it today you would earn a total of 1,547 from holding Invesco SP MidCap or generate 47.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SSgA vs. Invesco SP MidCap
Performance |
| Timeline |
| SSgA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Invesco SP MidCap |
SSgA and Invesco SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSgA and Invesco SP
The main advantage of trading using opposite SSgA and Invesco SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSgA position performs unexpectedly, Invesco 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 Invesco SP will offset losses from the drop in Invesco SP's long position.| SSgA vs. Vanguard Total Stock | SSgA vs. SPDR SP 500 | SSgA vs. iShares Core SP | SSgA vs. Vanguard Total Bond |
| Invesco SP vs. Vanguard Small Cap Growth | Invesco SP vs. Vanguard Mid Cap Value | Invesco SP vs. Vanguard Small Cap Value | Invesco SP vs. Vanguard Mid Cap Index |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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