Correlation Between SPDR SSgA and ClearShares OCIO

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

By analyzing existing cross correlation between SPDR SSgA Income and ClearShares OCIO ETF, you can compare the effects of market volatilities on SPDR SSgA and ClearShares OCIO 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 SPDR SSgA with a short position of ClearShares OCIO. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SSgA and ClearShares OCIO.

Diversification Opportunities for SPDR SSgA and ClearShares OCIO

0.94

Correlation Coefficient

SPDR SSgA  ClearShares OCIO

Almost no diversification

The 3 months correlation between SPDR and ClearShares is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SSgA Income and ClearShares OCIO ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClearShares OCIO ETF and SPDR SSgA 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 SPDR SSgA Income are associated (or correlated) with ClearShares OCIO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClearShares OCIO ETF has no effect on the direction of SPDR SSgA i.e., SPDR SSgA and ClearShares OCIO go up and down completely randomly.

Pair Corralation between SPDR SSgA and ClearShares OCIO

Given the investment horizon of 90 days SPDR SSgA is expected to generate 2.2 times less return on investment than ClearShares OCIO. But when comparing it to its historical volatility, SPDR SSgA Income is 1.61 times less risky than ClearShares OCIO. It trades about 0.13 of its potential returns per unit of risk. ClearShares OCIO ETF is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  3,546  in ClearShares OCIO ETF on August 4, 2025 and sell it today you would earn a total of  216.00  from holding ClearShares OCIO ETF or generate 6.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

SPDR SSgA Income  vs.  ClearShares OCIO ETF

SPDR SSgA Income

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR SSgA Income are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward-looking signals, SPDR SSgA is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

ClearShares OCIO ETF

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ClearShares OCIO ETF are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, ClearShares OCIO is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with SPDR SSgA and ClearShares OCIO

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

The idea behind SPDR SSgA Income and ClearShares OCIO ETF 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.