Correlation Between SSgA and IShares 3
Can any of the company-specific risk be diversified away by investing in both SSgA and IShares 3 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 IShares 3 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSgA and iShares 3 7 Year, you can compare the effects of market volatilities on SSgA and IShares 3 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 IShares 3. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSgA and IShares 3.
Diversification Opportunities for SSgA and IShares 3
Pay attention - limited upside
The 3 months correlation between SSgA and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SSgA and iShares 3 7 Year in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares 3 7 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 IShares 3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares 3 7 has no effect on the direction of SSgA i.e., SSgA and IShares 3 go up and down completely randomly.
Pair Corralation between SSgA and IShares 3
If you would invest 11,394 in iShares 3 7 Year on January 26, 2024 and sell it today you would lose (22.00) from holding iShares 3 7 Year or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SSgA vs. iShares 3 7 Year
Performance |
| Timeline |
| SSgA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares 3 7 |
SSgA and IShares 3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSgA and IShares 3
The main advantage of trading using opposite SSgA and IShares 3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSgA position performs unexpectedly, IShares 3 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 IShares 3 will offset losses from the drop in IShares 3's long position.| SSgA vs. Schwab Short Term Treasury | SSgA vs. Schwab International Small Cap | SSgA vs. Schwab TIPS ETF | SSgA vs. Schwab Aggregate Bond |
| IShares 3 vs. Schwab Short Term Treasury | IShares 3 vs. Schwab International Small Cap | IShares 3 vs. Schwab TIPS ETF | IShares 3 vs. Schwab Aggregate Bond |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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