Correlation Between Meta Platforms and Ssga Sp
Can any of the company-specific risk be diversified away by investing in both Meta Platforms and Ssga Sp 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 Meta Platforms and Ssga Sp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meta Platforms and Ssga Sp 500, you can compare the effects of market volatilities on Meta Platforms and Ssga Sp 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 Meta Platforms with a short position of Ssga Sp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meta Platforms and Ssga Sp.
Diversification Opportunities for Meta Platforms and Ssga Sp
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Meta and Ssga is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Meta Platforms and Ssga Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssga Sp 500 and Meta Platforms 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 Meta Platforms are associated (or correlated) with Ssga Sp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssga Sp 500 has no effect on the direction of Meta Platforms i.e., Meta Platforms and Ssga Sp go up and down completely randomly.
Pair Corralation between Meta Platforms and Ssga Sp
If you would invest 19,281 in Ssga Sp 500 on January 19, 2024 and sell it today you would earn a total of 4,421 from holding Ssga Sp 500 or generate 22.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 0.4% |
Values | Daily Returns |
Meta Platforms vs. Ssga Sp 500
Performance |
Timeline |
Meta Platforms |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ssga Sp 500 |
Meta Platforms and Ssga Sp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Meta Platforms and Ssga Sp
The main advantage of trading using opposite Meta Platforms and Ssga Sp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meta Platforms position performs unexpectedly, Ssga Sp 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 Sp will offset losses from the drop in Ssga Sp's long position.Meta Platforms vs. Meta Platforms | Meta Platforms vs. Alphabet Inc Class A | Meta Platforms vs. Twilio Inc | Meta Platforms vs. Snap Inc |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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