Correlation Between Starboard Investment and SSGA Active
Can any of the company-specific risk be diversified away by investing in both Starboard Investment 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 Starboard Investment and SSGA Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Starboard Investment Trust and SSGA Active Trust, you can compare the effects of market volatilities on Starboard Investment 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 Starboard Investment with a short position of SSGA Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Starboard Investment and SSGA Active.
Diversification Opportunities for Starboard Investment and SSGA Active
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Starboard and SSGA is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Starboard Investment Trust 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 Starboard Investment 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 Starboard Investment Trust 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 Starboard Investment i.e., Starboard Investment and SSGA Active go up and down completely randomly.
Pair Corralation between Starboard Investment and SSGA Active
If you would invest (100.00) in SSGA Active Trust on August 31, 2024 and sell it today you would earn a total of 100.00 from holding SSGA Active Trust or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Starboard Investment Trust vs. SSGA Active Trust
Performance |
| Timeline |
| Starboard Investment |
| SSGA Active Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Starboard Investment and SSGA Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Starboard Investment and SSGA Active
The main advantage of trading using opposite Starboard Investment and SSGA Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Starboard Investment 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 Starboard Investment Trust 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.| SSGA Active vs. SPDR SSGA Fixed | SSGA Active vs. SPDR DoubleLine Short | SSGA Active vs. SPDR Portfolio Corporate |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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