Correlation Between SSgA SPDR and HSBC SP
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By analyzing existing cross correlation between SSgA SPDR ETFs and HSBC SP 500, you can compare the effects of market volatilities on SSgA SPDR and HSBC 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 SSgA SPDR with a short position of HSBC SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSgA SPDR and HSBC SP.
Diversification Opportunities for SSgA SPDR and HSBC SP
Almost no diversification
The 3 months correlation between SSgA and HSBC is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding SSgA SPDR ETFs and HSBC SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC SP 500 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 HSBC SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC SP 500 has no effect on the direction of SSgA SPDR i.e., SSgA SPDR and HSBC SP go up and down completely randomly.
Pair Corralation between SSgA SPDR and HSBC SP
Assuming the 90 days trading horizon SSgA SPDR is expected to generate 4.99 times less return on investment than HSBC SP. But when comparing it to its historical volatility, SSgA SPDR ETFs is 6.56 times less risky than HSBC SP. It trades about 0.25 of its potential returns per unit of risk. HSBC SP 500 is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 4,934 in HSBC SP 500 on October 2, 2024 and sell it today you would earn a total of 476.00 from holding HSBC SP 500 or generate 9.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
SSgA SPDR ETFs vs. HSBC SP 500
Performance |
Timeline |
SSgA SPDR ETFs |
HSBC SP 500 |
SSgA SPDR and HSBC SP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SSgA SPDR and HSBC SP
The main advantage of trading using opposite SSgA SPDR and HSBC SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSgA SPDR position performs unexpectedly, HSBC 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 HSBC SP will offset losses from the drop in HSBC SP'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 SP |
HSBC SP vs. SIVERS SEMICONDUCTORS AB | HSBC SP vs. The Bank of | HSBC SP vs. Darden Restaurants | HSBC SP vs. Q2M Managementberatung AG |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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