Correlation Between BYOB and SSGA Active
Can any of the company-specific risk be diversified away by investing in both BYOB 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 BYOB and SSGA Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BYOB and SSGA Active Trust, you can compare the effects of market volatilities on BYOB 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 BYOB with a short position of SSGA Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYOB and SSGA Active.
Diversification Opportunities for BYOB and SSGA Active
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between BYOB and SSGA is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding BYOB 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 BYOB 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 BYOB 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 BYOB i.e., BYOB and SSGA Active go up and down completely randomly.
Pair Corralation between BYOB and SSGA Active
If you would invest 2,963 in SSGA Active Trust on September 14, 2024 and sell it today you would earn a total of 26.00 from holding SSGA Active Trust or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
BYOB vs. SSGA Active Trust
Performance |
| Timeline |
| BYOB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SSGA Active Trust |
BYOB and SSGA Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYOB and SSGA Active
The main advantage of trading using opposite BYOB and SSGA Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYOB 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.| BYOB vs. FT Vest Equity | BYOB vs. Zillow Group Class | BYOB vs. Northern Lights | BYOB vs. VanEck Vectors Moodys |
| SSGA Active vs. BlackRock Intermediate Muni | SSGA Active vs. SSGA Active Trust | SSGA Active vs. SPDR MarketAxess Investment | SSGA Active vs. SSGA Active Trust |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |