Correlation Between Value Line and Ssga International
Can any of the company-specific risk be diversified away by investing in both Value Line and Ssga International 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 Value Line and Ssga International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Value Line Premier and Ssga International Stock, you can compare the effects of market volatilities on Value Line and Ssga International 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 Value Line with a short position of Ssga International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Value Line and Ssga International.
Diversification Opportunities for Value Line and Ssga International
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Value and Ssga is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Value Line Premier and Ssga International Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssga International Stock and Value Line 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 Value Line Premier are associated (or correlated) with Ssga International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssga International Stock has no effect on the direction of Value Line i.e., Value Line and Ssga International go up and down completely randomly.
Pair Corralation between Value Line and Ssga International
Assuming the 90 days horizon Value Line Premier is expected to generate 0.97 times more return on investment than Ssga International. However, Value Line Premier is 1.03 times less risky than Ssga International. It trades about 0.11 of its potential returns per unit of risk. Ssga International Stock is currently generating about -0.04 per unit of risk. If you would invest 3,886 in Value Line Premier on August 31, 2024 and sell it today you would earn a total of 196.00 from holding Value Line Premier or generate 5.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Value Line Premier vs. Ssga International Stock
Performance |
Timeline |
Value Line Premier |
Ssga International Stock |
Value Line and Ssga International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Value Line and Ssga International
The main advantage of trading using opposite Value Line and Ssga International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Value Line position performs unexpectedly, Ssga International 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 Ssga International will offset losses from the drop in Ssga International's long position.Value Line vs. Value Line Larger | Value Line vs. Value Line Small | Value Line vs. Value Line Mid | Value Line vs. Value Line Income |
Ssga International vs. Schwab E Equity | Ssga International vs. Harding Loevner Emerging | Ssga International vs. Schwab Large Cap Growth | Ssga International vs. Schwab Dividend Equity |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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