This module allows you to analyze existing cross correlation between SPDR SP 500 ETF and Vanguard Total Stock Market ETF. You can compare the effects of market volatilities on SPDR SP 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 SPDR SP with a short position of Vanguard Total. See also your portfolio center
. Please also check ongoing floating volatility patterns of SPDR SP
and Vanguard Total
SPDR SP 500 ETF vs Vanguard Total Stock Market ET
Considering 30-days investment horizon, SPDR SP 500 ETF is expected to under-perform the Vanguard Total. In addition to that, SPDR SP is 1.05 times more volatile than Vanguard Total Stock Market ETF. It trades about -0.01 of its total potential returns per unit of risk. Vanguard Total Stock Market ETF is currently generating about 0.03 per unit of volatility. If you would invest 13,927 in Vanguard Total Stock Market ETF on February 19, 2018 and sell it today you would earn a total of 78.00 from holding Vanguard Total Stock Market ETF or generate 0.56% return on investment over 30 days.
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Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP 500 ETF and Vanguard Total Stock Market ET in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Total Stock and SPDR SP 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 SP 500 ETF 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 SPDR SP i.e. SPDR SP and Vanguard Total go up and down completely randomly.
Over the last 30 days SPDR SP 500 ETF has generated negative risk-adjusted returns adding no value to investors with long positions.
Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Total Stock Market ETF are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days.