Correlation Between Microsoft and Ssga High
Can any of the company-specific risk be diversified away by investing in both Microsoft and Ssga High 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 Microsoft and Ssga High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Ssga High Yield, you can compare the effects of market volatilities on Microsoft and Ssga High 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 Microsoft with a short position of Ssga High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Ssga High.
Diversification Opportunities for Microsoft and Ssga High
Pay attention - limited upside
The 3 months correlation between Microsoft and Ssga is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Ssga High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssga High Yield and Microsoft 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 Microsoft are associated (or correlated) with Ssga High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssga High Yield has no effect on the direction of Microsoft i.e., Microsoft and Ssga High go up and down completely randomly.
Pair Corralation between Microsoft and Ssga High
If you would invest (100.00) in Ssga High Yield on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Ssga High Yield or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Microsoft vs. Ssga High Yield
Performance |
| Timeline |
| Microsoft |
| Ssga High Yield |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Microsoft and Ssga High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Ssga High
The main advantage of trading using opposite Microsoft and Ssga High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Ssga High 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 Ssga High will offset losses from the drop in Ssga High's long position.| Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated | Microsoft vs. Crowdstrike Holdings | Microsoft vs. Cloudflare |
| Ssga High vs. Ultra Short Fixed Income | Ssga High vs. Astor Longshort Fund | Ssga High vs. Siit Ultra Short | Ssga High vs. Angel Oak Ultrashort |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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