Correlation Between SSGA Active and FundX Aggressive
Can any of the company-specific risk be diversified away by investing in both SSGA Active and FundX Aggressive 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 FundX Aggressive 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 FundX Aggressive ETF, you can compare the effects of market volatilities on SSGA Active and FundX Aggressive 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 FundX Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSGA Active and FundX Aggressive.
Diversification Opportunities for SSGA Active and FundX Aggressive
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SSGA and FundX is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding SSGA Active Trust and FundX Aggressive ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FundX Aggressive ETF 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 FundX Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FundX Aggressive ETF has no effect on the direction of SSGA Active i.e., SSGA Active and FundX Aggressive go up and down completely randomly.
Pair Corralation between SSGA Active and FundX Aggressive
Given the investment horizon of 90 days SSGA Active Trust is expected to under-perform the FundX Aggressive. But the etf apears to be less risky and, when comparing its historical volatility, SSGA Active Trust is 5.35 times less risky than FundX Aggressive. The etf trades about -0.02 of its potential returns per unit of risk. The FundX Aggressive ETF is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 7,313 in FundX Aggressive ETF on October 23, 2024 and sell it today you would earn a total of 61.00 from holding FundX Aggressive ETF or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSGA Active Trust vs. FundX Aggressive ETF
Performance |
| Timeline |
| SSGA Active Trust |
| FundX Aggressive ETF |
SSGA Active and FundX Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSGA Active and FundX Aggressive
The main advantage of trading using opposite SSGA Active and FundX Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSGA Active position performs unexpectedly, FundX Aggressive 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 FundX Aggressive will offset losses from the drop in FundX Aggressive's 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 |
| FundX Aggressive vs. Series Portfolios Trust | FundX Aggressive vs. FT Vest Equity | FundX Aggressive vs. Zillow Group Class | FundX Aggressive vs. Northern Lights |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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