Correlation Between SSgA SPDR and Amundi Index
Can any of the company-specific risk be diversified away by investing in both SSgA SPDR and Amundi Index 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 SPDR and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSgA SPDR ETFs and Amundi Index Solutions, you can compare the effects of market volatilities on SSgA SPDR and Amundi Index 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 SPDR with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSgA SPDR and Amundi Index.
Diversification Opportunities for SSgA SPDR and Amundi Index
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SSgA and Amundi is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding SSgA SPDR ETFs and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions and SSgA SPDR 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 SPDR ETFs are associated (or correlated) with Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of SSgA SPDR i.e., SSgA SPDR and Amundi Index go up and down completely randomly.
Pair Corralation between SSgA SPDR and Amundi Index
Assuming the 90 days trading horizon SSgA SPDR ETFs is expected to generate 0.51 times more return on investment than Amundi Index. However, SSgA SPDR ETFs is 1.95 times less risky than Amundi Index. It trades about 0.36 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about -0.01 per unit of risk. If you would invest 20,820 in SSgA SPDR ETFs on February 5, 2024 and sell it today you would earn a total of 795.00 from holding SSgA SPDR ETFs or generate 3.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SSgA SPDR ETFs vs. Amundi Index Solutions
Performance |
Timeline |
SSgA SPDR ETFs |
Amundi Index Solutions |
SSgA SPDR and Amundi Index Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SSgA SPDR and Amundi Index
The main advantage of trading using opposite SSgA SPDR and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSgA SPDR position performs unexpectedly, Amundi Index 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 Amundi Index will offset losses from the drop in Amundi Index's long position.SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs |
Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Multi Units France | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Lyxor UCITS Stoxx |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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