Correlation Between SSGA Active and Aquagold International
Can any of the company-specific risk be diversified away by investing in both SSGA Active and Aquagold International 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 Aquagold International 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 Aquagold International, you can compare the effects of market volatilities on SSGA Active and Aquagold International 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 Aquagold International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSGA Active and Aquagold International.
Diversification Opportunities for SSGA Active and Aquagold International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SSGA and Aquagold is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SSGA Active Trust and Aquagold International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquagold International 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 Aquagold International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquagold International has no effect on the direction of SSGA Active i.e., SSGA Active and Aquagold International go up and down completely randomly.
Pair Corralation between SSGA Active and Aquagold International
Given the investment horizon of 90 days SSGA Active is expected to generate 108.98 times less return on investment than Aquagold International. But when comparing it to its historical volatility, SSGA Active Trust is 182.53 times less risky than Aquagold International. It trades about 0.1 of its potential returns per unit of risk. Aquagold International is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 25.00 in Aquagold International on September 2, 2024 and sell it today you would lose (24.40) from holding Aquagold International or give up 97.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSGA Active Trust vs. Aquagold International
Performance |
| Timeline |
| SSGA Active Trust |
| Aquagold International |
SSGA Active and Aquagold International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSGA Active and Aquagold International
The main advantage of trading using opposite SSGA Active and Aquagold International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSGA Active position performs unexpectedly, Aquagold International 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 Aquagold International will offset losses from the drop in Aquagold International's long position.| SSGA Active vs. SPDR Bloomberg Barclays | SSGA Active vs. SPDR SSGA Fixed | SSGA Active vs. SPDR DoubleLine Short | SSGA Active vs. SPDR Portfolio Corporate |
| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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