Correlation Between SSGA Active and Cavalier Investments
Can any of the company-specific risk be diversified away by investing in both SSGA Active and Cavalier Investments 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 SSGA Active and Cavalier Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSGA Active Trust and Cavalier Investments, you can compare the effects of market volatilities on SSGA Active and Cavalier Investments 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 SSGA Active with a short position of Cavalier Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSGA Active and Cavalier Investments.
Diversification Opportunities for SSGA Active and Cavalier Investments
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between SSGA and Cavalier is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding SSGA Active Trust and Cavalier Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cavalier Investments and SSGA Active 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 SSGA Active Trust are associated (or correlated) with Cavalier Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cavalier Investments has no effect on the direction of SSGA Active i.e., SSGA Active and Cavalier Investments go up and down completely randomly.
Pair Corralation between SSGA Active and Cavalier Investments
If you would invest 2,869 in SSGA Active Trust on September 2, 2024 and sell it today you would earn a total of 130.00 from holding SSGA Active Trust or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
SSGA Active Trust vs. Cavalier Investments
Performance |
| Timeline |
| SSGA Active Trust |
| Cavalier Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SSGA Active and Cavalier Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSGA Active and Cavalier Investments
The main advantage of trading using opposite SSGA Active and Cavalier Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSGA Active position performs unexpectedly, Cavalier Investments 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 Cavalier Investments will offset losses from the drop in Cavalier Investments' long position.| SSGA Active vs. BlackRock Intermediate Muni | SSGA Active vs. SSGA Active Trust | SSGA Active vs. SPDR MarketAxess Investment | SSGA Active vs. SSGA Active Trust |
| Cavalier Investments vs. Vanguard Growth Index | Cavalier Investments vs. iShares Russell 1000 | Cavalier Investments vs. iShares SP 500 | Cavalier Investments vs. iShares Core SP |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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