Correlation Between SSgA SPDR and Ossiam Irl
Can any of the company-specific risk be diversified away by investing in both SSgA SPDR and Ossiam Irl 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 Ossiam Irl 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 Ossiam Irl Icav, you can compare the effects of market volatilities on SSgA SPDR and Ossiam Irl 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 Ossiam Irl. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSgA SPDR and Ossiam Irl.
Diversification Opportunities for SSgA SPDR and Ossiam Irl
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SSgA and Ossiam is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding SSgA SPDR ETFs and Ossiam Irl Icav in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ossiam Irl Icav 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 Ossiam Irl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ossiam Irl Icav has no effect on the direction of SSgA SPDR i.e., SSgA SPDR and Ossiam Irl go up and down completely randomly.
Pair Corralation between SSgA SPDR and Ossiam Irl
Assuming the 90 days trading horizon SSgA SPDR is expected to generate 7.07 times less return on investment than Ossiam Irl. But when comparing it to its historical volatility, SSgA SPDR ETFs is 6.75 times less risky than Ossiam Irl. It trades about 0.2 of its potential returns per unit of risk. Ossiam Irl Icav is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 18,464 in Ossiam Irl Icav on September 25, 2024 and sell it today you would earn a total of 2,211 from holding Ossiam Irl Icav or generate 11.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.46% |
Values | Daily Returns |
SSgA SPDR ETFs vs. Ossiam Irl Icav
Performance |
Timeline |
SSgA SPDR ETFs |
Ossiam Irl Icav |
SSgA SPDR and Ossiam Irl Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SSgA SPDR and Ossiam Irl
The main advantage of trading using opposite SSgA SPDR and Ossiam Irl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSgA SPDR position performs unexpectedly, Ossiam Irl 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 Ossiam Irl will offset losses from the drop in Ossiam Irl's long position.SSgA SPDR vs. UBS Fund Solutions | SSgA SPDR vs. Xtrackers II | SSgA SPDR vs. Xtrackers Nikkei 225 | SSgA SPDR vs. iShares VII PLC |
Ossiam Irl vs. UBS Fund Solutions | Ossiam Irl vs. Xtrackers II | Ossiam Irl vs. Xtrackers Nikkei 225 | Ossiam Irl vs. iShares VII PLC |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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