Correlation Between Ssga International and Ssga International

Can any of the company-specific risk be diversified away by investing in both Ssga International and Ssga International 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 International and Ssga International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ssga International Stock and Ssga International Stock, you can compare the effects of market volatilities on Ssga International and Ssga International 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 International with a short position of Ssga International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssga International and Ssga International.

Diversification Opportunities for Ssga International and Ssga International

1.0

Correlation Coefficient

Ssga International  Ssga International

No risk reduction

The 3 months correlation between Ssga and Ssga is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Ssga International Stock and Ssga International Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssga International Stock and Ssga International 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 International Stock are associated (or correlated) with Ssga International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssga International Stock has no effect on the direction of Ssga International i.e., Ssga International and Ssga International go up and down completely randomly.

Pair Corralation between Ssga International and Ssga International

Assuming the 90 days horizon Ssga International Stock is expected to under-perform the Ssga International. In addition to that, Ssga International is 1.01 times more volatile than Ssga International Stock. It trades about -0.14 of its total potential returns per unit of risk. Ssga International Stock is currently generating about -0.14 per unit of volatility. If you would invest  1,202  in Ssga International Stock on September 26, 2024 and sell it today you would lose (75.00) from holding Ssga International Stock or give up 6.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

Ssga International Stock  vs.  Ssga International Stock

Ssga International Stock

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ssga International Stock has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Ssga International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ssga International Stock

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ssga International Stock has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Ssga International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ssga International and Ssga International

The main advantage of trading using opposite Ssga International and Ssga International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssga International position performs unexpectedly, Ssga International 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 International will offset losses from the drop in Ssga International's long position.

The idea behind Ssga International Stock and Ssga International Stock pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.