Correlation Between SSgA and Vanguard Total
Can any of the company-specific risk be diversified away by investing in both SSgA and Vanguard Total 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 and Vanguard Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSgA and Vanguard Total Stock, you can compare the effects of market volatilities on SSgA and Vanguard Total 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 with a short position of Vanguard Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSgA and Vanguard Total.
Diversification Opportunities for SSgA and Vanguard Total
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SSgA and Vanguard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SSgA and Vanguard Total Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Total Stock and 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 SSgA are associated (or correlated) with Vanguard Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Total Stock has no effect on the direction of SSgA i.e., SSgA and Vanguard Total go up and down completely randomly.
Pair Corralation between SSgA and Vanguard Total
If you would invest 25,106 in Vanguard Total Stock on December 29, 2023 and sell it today you would earn a total of 867.00 from holding Vanguard Total Stock or generate 3.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
SSgA vs. Vanguard Total Stock
Performance |
Timeline |
SSgA |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Vanguard Total Stock |
SSgA and Vanguard Total Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SSgA and Vanguard Total
The main advantage of trading using opposite SSgA and Vanguard Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSgA position performs unexpectedly, Vanguard Total 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 Vanguard Total will offset losses from the drop in Vanguard Total's long position.The idea behind SSgA and Vanguard Total 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.Vanguard Total vs. Freedom Day Dividend | Vanguard Total vs. IShares MSCI China | Vanguard Total vs. SmartETFs Dividend Builder | Vanguard Total vs. Listed Funds Trust |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Content Syndication Quickly integrate customizable finance content to your own investment portal |