Correlation Between State Street and Select Fund
Can any of the company-specific risk be diversified away by investing in both State Street and Select Fund 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 State Street and Select Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street Institutional and Select Fund I, you can compare the effects of market volatilities on State Street and Select Fund 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 State Street with a short position of Select Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Select Fund.
Diversification Opportunities for State Street and Select Fund
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between State and Select is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding State Street Institutional and Select Fund I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Fund I and State Street 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 State Street Institutional are associated (or correlated) with Select Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Fund I has no effect on the direction of State Street i.e., State Street and Select Fund go up and down completely randomly.
Pair Corralation between State Street and Select Fund
Assuming the 90 days horizon State Street is expected to generate 1.53 times less return on investment than Select Fund. In addition to that, State Street is 1.15 times more volatile than Select Fund I. It trades about 0.16 of its total potential returns per unit of risk. Select Fund I is currently generating about 0.29 per unit of volatility. If you would invest 11,407 in Select Fund I on April 29, 2025 and sell it today you would earn a total of 2,083 from holding Select Fund I or generate 18.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Street Institutional vs. Select Fund I
Performance |
| Timeline |
| State Street Institu |
| Select Fund I |
State Street and Select Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Street and Select Fund
The main advantage of trading using opposite State Street and Select Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street position performs unexpectedly, Select Fund 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 Select Fund will offset losses from the drop in Select Fund's long position.| State Street vs. State Street Core | State Street vs. State Street Income | State Street vs. State Street Institutional |
| Select Fund vs. Ultra Fund I | Select Fund vs. International Growth Fund | Select Fund vs. Ultra Fund A | Select Fund vs. Value Fund I |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |