Correlation Between SSgA and SPDR SSGA
Can any of the company-specific risk be diversified away by investing in both SSgA 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 SSgA and SPDR SSGA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSgA and SPDR SSGA Sector, you can compare the effects of market volatilities on SSgA 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 SSgA with a short position of SPDR SSGA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSgA and SPDR SSGA.
Diversification Opportunities for SSgA and SPDR SSGA
Very weak diversification
The 3 months correlation between SSgA and SPDR is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding SSgA and SPDR SSGA Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SSGA Sector 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 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 Sector has no effect on the direction of SSgA i.e., SSgA and SPDR SSGA go up and down completely randomly.
Pair Corralation between SSgA and SPDR SSGA
Given the investment horizon of 90 days SSgA is expected to generate 0.96 times more return on investment than SPDR SSGA. However, SSgA is 1.04 times less risky than SPDR SSGA. It trades about 0.16 of its potential returns per unit of risk. SPDR SSGA Sector is currently generating about 0.13 per unit of risk. If you would invest 7,740 in SSgA on September 25, 2025 and sell it today you would earn a total of 260.00 from holding SSgA or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 42.86% |
| Values | Daily Returns |
SSgA vs. SPDR SSGA Sector
Performance |
| Timeline |
| SSgA |
Risk-Adjusted Performance
Good
Weak | Strong |
| SPDR SSGA Sector |
SSgA and SPDR SSGA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSgA and SPDR SSGA
The main advantage of trading using opposite SSgA and SPDR SSGA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSgA 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.| SSgA vs. Technology Select Sector | SSgA vs. iShares Core SP | SSgA vs. Vanguard High Dividend | SSgA vs. Vanguard Extended Market |
| SPDR SSGA vs. Invesco CEF Income | SPDR SSGA vs. Innovator SP 500 | SPDR SSGA vs. Main Buywrite ETF | SPDR SSGA vs. Innovator SP 500 |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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