Correlation Between SSgA SPDR and IShares Core

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SSgA SPDR and IShares Core 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 IShares Core 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 iShares Core MSCI, you can compare the effects of market volatilities on SSgA SPDR and IShares Core 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 IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSgA SPDR and IShares Core.

Diversification Opportunities for SSgA SPDR and IShares Core

-0.16
  Correlation Coefficient

Good diversification

The 3 months correlation between SSgA and IShares is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding SSgA SPDR ETFs and iShares Core MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core MSCI 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 IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core MSCI has no effect on the direction of SSgA SPDR i.e., SSgA SPDR and IShares Core go up and down completely randomly.

Pair Corralation between SSgA SPDR and IShares Core

Assuming the 90 days trading horizon SSgA SPDR ETFs is expected to generate 0.91 times more return on investment than IShares Core. However, SSgA SPDR ETFs is 1.1 times less risky than IShares Core. It trades about 0.1 of its potential returns per unit of risk. iShares Core MSCI is currently generating about 0.0 per unit of risk. If you would invest  3,790  in SSgA SPDR ETFs on September 26, 2024 and sell it today you would earn a total of  172.00  from holding SSgA SPDR ETFs or generate 4.54% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

SSgA SPDR ETFs  vs.  iShares Core MSCI

 Performance 
       Timeline  
SSgA SPDR ETFs 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in SSgA SPDR ETFs are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, SSgA SPDR is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
iShares Core MSCI 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days iShares Core MSCI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, IShares Core is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

SSgA SPDR and IShares Core Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SSgA SPDR and IShares Core

The main advantage of trading using opposite SSgA SPDR and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSgA SPDR position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core's long position.
The idea behind SSgA SPDR ETFs and iShares Core MSCI 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.
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

Other Complementary Tools

Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine