Correlation Between SPDR SSGA and TrimTabs Donoghue
Can any of the company-specific risk be diversified away by investing in both SPDR SSGA and TrimTabs Donoghue 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 SPDR SSGA and TrimTabs Donoghue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SSGA Fixed and TrimTabs Donoghue Forlines, you can compare the effects of market volatilities on SPDR SSGA and TrimTabs Donoghue 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 SPDR SSGA with a short position of TrimTabs Donoghue. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SSGA and TrimTabs Donoghue.
Diversification Opportunities for SPDR SSGA and TrimTabs Donoghue
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPDR and TrimTabs is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SSGA Fixed and TrimTabs Donoghue Forlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TrimTabs Donoghue and SPDR SSGA 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 SPDR SSGA Fixed are associated (or correlated) with TrimTabs Donoghue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TrimTabs Donoghue has no effect on the direction of SPDR SSGA i.e., SPDR SSGA and TrimTabs Donoghue go up and down completely randomly.
Pair Corralation between SPDR SSGA and TrimTabs Donoghue
Given the investment horizon of 90 days SPDR SSGA is expected to generate 1.74 times less return on investment than TrimTabs Donoghue. In addition to that, SPDR SSGA is 1.29 times more volatile than TrimTabs Donoghue Forlines. It trades about 0.03 of its total potential returns per unit of risk. TrimTabs Donoghue Forlines is currently generating about 0.08 per unit of volatility. If you would invest 1,894 in TrimTabs Donoghue Forlines on September 14, 2024 and sell it today you would earn a total of 249.00 from holding TrimTabs Donoghue Forlines or generate 13.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SSGA Fixed vs. TrimTabs Donoghue Forlines
Performance |
| Timeline |
| SPDR SSGA Fixed |
| TrimTabs Donoghue |
SPDR SSGA and TrimTabs Donoghue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SSGA and TrimTabs Donoghue
The main advantage of trading using opposite SPDR SSGA and TrimTabs Donoghue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SSGA position performs unexpectedly, TrimTabs Donoghue 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 TrimTabs Donoghue will offset losses from the drop in TrimTabs Donoghue's long position.| SPDR SSGA vs. SPDR SSGA Sector | SPDR SSGA vs. SPDR DoubleLine Emerging | SPDR SSGA vs. SPDR DoubleLine Short | SPDR SSGA vs. SPDR SSgA Ultra |
| TrimTabs Donoghue vs. SPDR Bloomberg Barclays | TrimTabs Donoghue vs. SPDR SSGA Fixed | TrimTabs Donoghue vs. SPDR DoubleLine Short | TrimTabs Donoghue 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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