Correlation Between Whitford Asset and SSGA Active

Can any of the company-specific risk be diversified away by investing in both Whitford Asset and SSGA Active 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 Whitford Asset and SSGA Active into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Whitford Asset Management and SSGA Active Trust, you can compare the effects of market volatilities on Whitford Asset and SSGA Active 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 Whitford Asset with a short position of SSGA Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whitford Asset and SSGA Active.

Diversification Opportunities for Whitford Asset and SSGA Active

0.0

Correlation Coefficient

Whitford Asset  SSGA Active

Pay attention - limited upside

The 3 months correlation between Whitford and SSGA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Whitford Asset Management and SSGA Active Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSGA Active Trust and Whitford Asset 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 Whitford Asset Management are associated (or correlated) with SSGA Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSGA Active Trust has no effect on the direction of Whitford Asset i.e., Whitford Asset and SSGA Active go up and down completely randomly.

Pair Corralation between Whitford Asset and SSGA Active

If you would invest (100.00) in Whitford Asset Management on September 30, 2024 and sell it today you would earn a total of  100.00  from holding Whitford Asset Management 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

Whitford Asset Management  vs.  SSGA Active Trust

Whitford Asset Management

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Whitford Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Whitford Asset is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

SSGA Active Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SSGA Active Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, SSGA Active is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Whitford Asset and SSGA Active

The main advantage of trading using opposite Whitford Asset and SSGA Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whitford Asset position performs unexpectedly, SSGA Active 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 Active will offset losses from the drop in SSGA Active's long position.

The idea behind Whitford Asset Management and SSGA Active Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.