Correlation Between SPDR SSGA and Vanguard Dividend
Can any of the company-specific risk be diversified away by investing in both SPDR SSGA and Vanguard Dividend 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 Vanguard Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SSGA Gender and Vanguard Dividend Appreciation, you can compare the effects of market volatilities on SPDR SSGA and Vanguard Dividend 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 Vanguard Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SSGA and Vanguard Dividend.
Diversification Opportunities for SPDR SSGA and Vanguard Dividend
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and Vanguard is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SSGA Gender and Vanguard Dividend Appreciation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Dividend 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 Gender are associated (or correlated) with Vanguard Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Dividend has no effect on the direction of SPDR SSGA i.e., SPDR SSGA and Vanguard Dividend go up and down completely randomly.
Pair Corralation between SPDR SSGA and Vanguard Dividend
Considering the 90-day investment horizon SPDR SSGA Gender is expected to under-perform the Vanguard Dividend. In addition to that, SPDR SSGA is 1.01 times more volatile than Vanguard Dividend Appreciation. It trades about -0.35 of its total potential returns per unit of risk. Vanguard Dividend Appreciation is currently generating about -0.3 per unit of volatility. If you would invest 18,200 in Vanguard Dividend Appreciation on January 20, 2024 and sell it today you would lose (786.00) from holding Vanguard Dividend Appreciation or give up 4.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
SPDR SSGA Gender vs. Vanguard Dividend Appreciation
Performance |
| Timeline |
| SPDR SSGA Gender |
| Vanguard Dividend |
SPDR SSGA and Vanguard Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SSGA and Vanguard Dividend
The main advantage of trading using opposite SPDR SSGA and Vanguard Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SSGA position performs unexpectedly, Vanguard Dividend 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 Dividend will offset losses from the drop in Vanguard Dividend's long position.| SPDR SSGA vs. Dimensional Targeted Value | SPDR SSGA vs. Dimensional World ex | SPDR SSGA vs. Dimensional Small Cap |
| Vanguard Dividend vs. Dimensional Targeted Value | Vanguard Dividend vs. Dimensional World ex | Vanguard Dividend vs. Dimensional Small Cap |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |