Correlation Between SSGA Active and Hartford Municipal
Can any of the company-specific risk be diversified away by investing in both SSGA Active and Hartford Municipal 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 Hartford Municipal 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 Hartford Municipal Opportunities, you can compare the effects of market volatilities on SSGA Active and Hartford Municipal 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 Hartford Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSGA Active and Hartford Municipal.
Diversification Opportunities for SSGA Active and Hartford Municipal
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SSGA and Hartford is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding SSGA Active Trust and Hartford Municipal Opportuniti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Municipal 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 Hartford Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Municipal has no effect on the direction of SSGA Active i.e., SSGA Active and Hartford Municipal go up and down completely randomly.
Pair Corralation between SSGA Active and Hartford Municipal
Given the investment horizon of 90 days SSGA Active is expected to generate 3.17 times less return on investment than Hartford Municipal. But when comparing it to its historical volatility, SSGA Active Trust is 1.4 times less risky than Hartford Municipal. It trades about 0.04 of its potential returns per unit of risk. Hartford Municipal Opportunities is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,874 in Hartford Municipal Opportunities on August 24, 2024 and sell it today you would earn a total of 24.00 from holding Hartford Municipal Opportunities or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSGA Active Trust vs. Hartford Municipal Opportuniti
Performance |
| Timeline |
| SSGA Active Trust |
| Hartford Municipal |
SSGA Active and Hartford Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSGA Active and Hartford Municipal
The main advantage of trading using opposite SSGA Active and Hartford Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSGA Active position performs unexpectedly, Hartford Municipal 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 Hartford Municipal will offset losses from the drop in Hartford Municipal'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 |
| Hartford Municipal vs. BlackRock Intermediate Muni | Hartford Municipal vs. SSGA Active Trust | Hartford Municipal vs. SPDR MarketAxess Investment | Hartford Municipal 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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