Correlation Between FUT and SPDR SSgA
Can any of the company-specific risk be diversified away by investing in both FUT 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 FUT and SPDR SSgA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUT and SPDR SSgA Multi Asset, you can compare the effects of market volatilities on FUT 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 FUT with a short position of SPDR SSgA. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUT and SPDR SSgA.
Diversification Opportunities for FUT and SPDR SSgA
Pay attention - limited upside
The 3 months correlation between FUT and SPDR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FUT and SPDR SSgA Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SSgA Multi and FUT 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 FUT 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 Multi has no effect on the direction of FUT i.e., FUT and SPDR SSgA go up and down completely randomly.
Pair Corralation between FUT and SPDR SSgA
If you would invest 2,629 in SPDR SSgA Multi Asset on January 24, 2024 and sell it today you would earn a total of 164.00 from holding SPDR SSgA Multi Asset or generate 6.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
FUT vs. SPDR SSgA Multi Asset
Performance |
| Timeline |
| FUT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SPDR SSgA Multi |
FUT and SPDR SSgA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUT and SPDR SSgA
The main advantage of trading using opposite FUT and SPDR SSgA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUT 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.| FUT vs. Next Meats Holdings | FUT vs. Xtra Energy Corp | FUT vs. Blockchain Industries | FUT vs. Corner Growth Acquisition |
| SPDR SSgA vs. Amplify High Income | SPDR SSgA vs. First Trust Multi Asset | SPDR SSgA vs. Invesco KBW High | SPDR SSgA vs. Global X SuperIncome |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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