Correlation Between Ssga High and American Balanced
Can any of the company-specific risk be diversified away by investing in both Ssga High and American Balanced 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 High and American Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssga High Yield and American Balanced Fund, you can compare the effects of market volatilities on Ssga High and American Balanced 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 High with a short position of American Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssga High and American Balanced.
Diversification Opportunities for Ssga High and American Balanced
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ssga and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ssga High Yield and American Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Balanced and Ssga High 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 High Yield are associated (or correlated) with American Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Balanced has no effect on the direction of Ssga High i.e., Ssga High and American Balanced go up and down completely randomly.
Pair Corralation between Ssga High and American Balanced
If you would invest 2,871 in American Balanced Fund on January 20, 2024 and sell it today you would earn a total of 386.00 from holding American Balanced Fund or generate 13.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ssga High Yield vs. American Balanced Fund
Performance |
| Timeline |
| Ssga High Yield |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| American Balanced |
Ssga High and American Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssga High and American Balanced
The main advantage of trading using opposite Ssga High and American Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssga High position performs unexpectedly, American Balanced 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 American Balanced will offset losses from the drop in American Balanced's long position.| Ssga High vs. Atac Inflation Rotation | Ssga High vs. Short Duration Inflation | Ssga High vs. Fs Managed Futures | Ssga High vs. Ab Bond Inflation |
| American Balanced vs. Income Fund Of | American Balanced vs. New World Fund | American Balanced vs. American Mutual Fund | American Balanced vs. American Mutual Fund |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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