Correlation Between SPDR SSgA and SPDR SSGA
Can any of the company-specific risk be diversified away by investing in both SPDR 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 SPDR 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 SPDR SSgA Ultra and SPDR SSGA Fixed, you can compare the effects of market volatilities on SPDR 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 SPDR SSgA with a short position of SPDR SSGA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SSgA and SPDR SSGA.
Diversification Opportunities for SPDR SSgA and SPDR SSGA
Very weak diversification
The 3 months correlation between SPDR and SPDR is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SSgA Ultra and SPDR SSGA Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SSGA Fixed and SPDR 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 SPDR SSgA Ultra 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 Fixed has no effect on the direction of SPDR SSgA i.e., SPDR SSgA and SPDR SSGA go up and down completely randomly.
Pair Corralation between SPDR SSgA and SPDR SSGA
Given the investment horizon of 90 days SPDR SSgA is expected to generate 1.62 times less return on investment than SPDR SSGA. But when comparing it to its historical volatility, SPDR SSgA Ultra is 7.15 times less risky than SPDR SSGA. It trades about 0.34 of its potential returns per unit of risk. SPDR SSGA Fixed is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,535 in SPDR SSGA Fixed on April 6, 2025 and sell it today you would earn a total of 28.00 from holding SPDR SSGA Fixed or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SSgA Ultra vs. SPDR SSGA Fixed
Performance |
| Timeline |
| SPDR SSgA Ultra |
| SPDR SSGA Fixed |
SPDR SSgA and SPDR SSGA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SSgA and SPDR SSGA
The main advantage of trading using opposite SPDR SSgA and SPDR SSGA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR 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.| SPDR SSgA vs. VanEck Vectors Moodys | SPDR SSgA vs. Vanguard ESG Corporate | SPDR SSgA vs. Pacer Cash Cows | SPDR SSgA vs. Vanguard Intermediate Term Corporate |
| SPDR SSGA vs. BondBloxx ETF Trust | SPDR SSGA vs. Virtus ETF Trust | SPDR SSGA vs. Ocean Park High | SPDR SSGA vs. TCW ETF Trust |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |