Correlation Between SSGA Active and VCLO
Can any of the company-specific risk be diversified away by investing in both SSGA Active and VCLO 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 Active and VCLO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSGA Active Trust and VCLO, you can compare the effects of market volatilities on SSGA Active and VCLO 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 Active with a short position of VCLO. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSGA Active and VCLO.
Diversification Opportunities for SSGA Active and VCLO
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SSGA and VCLO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SSGA Active Trust and VCLO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VCLO and SSGA Active 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 Active Trust are associated (or correlated) with VCLO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VCLO has no effect on the direction of SSGA Active i.e., SSGA Active and VCLO go up and down completely randomly.
Pair Corralation between SSGA Active and VCLO
If you would invest (100.00) in VCLO on December 4, 2024 and sell it today you would earn a total of 100.00 from holding VCLO or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
SSGA Active Trust vs. VCLO
Performance |
Timeline |
SSGA Active Trust |
VCLO |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
SSGA Active and VCLO Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SSGA Active and VCLO
The main advantage of trading using opposite SSGA Active and VCLO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSGA Active position performs unexpectedly, VCLO 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 VCLO will offset losses from the drop in VCLO's long position.SSGA Active vs. BlackRock Intermediate Muni | SSGA Active vs. SSGA Active Trust | SSGA Active vs. SPDR MarketAxess Investment | SSGA Active vs. SSGA Active Trust |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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