Correlation Between Merrill Lynch and Ssga Sp
Can any of the company-specific risk be diversified away by investing in both Merrill Lynch 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 Merrill Lynch and Ssga Sp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Merrill Lynch and Ssga Sp 500, you can compare the effects of market volatilities on Merrill Lynch 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 Merrill Lynch with a short position of Ssga Sp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merrill Lynch and Ssga Sp.
Diversification Opportunities for Merrill Lynch and Ssga Sp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Merrill and Ssga is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Merrill Lynch 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 Merrill Lynch 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 Merrill Lynch 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 Merrill Lynch i.e., Merrill Lynch and Ssga Sp go up and down completely randomly.
Pair Corralation between Merrill Lynch and Ssga Sp
If you would invest (100.00) in Merrill Lynch on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Merrill Lynch 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 |
Merrill Lynch vs. Ssga Sp 500
Performance |
Timeline |
Merrill Lynch |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ssga Sp 500 |
Merrill Lynch and Ssga Sp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Merrill Lynch and Ssga Sp
The main advantage of trading using opposite Merrill Lynch and Ssga Sp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merrill Lynch 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.Merrill Lynch vs. Vanguard Total Stock | Merrill Lynch vs. SPDR SP 500 | Merrill Lynch vs. iShares Core SP | Merrill Lynch vs. Vanguard Total Bond |
Ssga Sp vs. State Street Target | Ssga Sp vs. State Street Target | Ssga Sp vs. Ssga International Stock | Ssga Sp vs. State Street Target |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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