Correlation Between Fundvantage Trust and State Street
Can any of the company-specific risk be diversified away by investing in both Fundvantage Trust and State Street 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 Fundvantage Trust and State Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundvantage Trust and State Street Global, you can compare the effects of market volatilities on Fundvantage Trust and State Street 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 Fundvantage Trust with a short position of State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundvantage Trust and State Street.
Diversification Opportunities for Fundvantage Trust and State Street
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fundvantage and State is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fundvantage Trust and State Street Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Global and Fundvantage Trust 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 Fundvantage Trust are associated (or correlated) with State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Global has no effect on the direction of Fundvantage Trust i.e., Fundvantage Trust and State Street go up and down completely randomly.
Pair Corralation between Fundvantage Trust and State Street
Assuming the 90 days horizon Fundvantage Trust is expected to generate 73.29 times more return on investment than State Street. However, Fundvantage Trust is 73.29 times more volatile than State Street Global. It trades about 0.06 of its potential returns per unit of risk. State Street Global is currently generating about 0.06 per unit of risk. If you would invest 1.00 in Fundvantage Trust on September 12, 2024 and sell it today you would earn a total of 99.00 from holding Fundvantage Trust or generate 9900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 63.23% |
| Values | Daily Returns |
Fundvantage Trust vs. State Street Global
Performance |
| Timeline |
| Fundvantage Trust |
| State Street Global |
Fundvantage Trust and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundvantage Trust and State Street
The main advantage of trading using opposite Fundvantage Trust and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundvantage Trust position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| Fundvantage Trust vs. Stone Ridge Diversified | Fundvantage Trust vs. Western Asset Diversified | Fundvantage Trust vs. Wealthbuilder Conservative Allocation | Fundvantage Trust vs. Lord Abbett Diversified |
| State Street vs. Qs Moderate Growth | State Street vs. Jp Morgan Smartretirement | State Street vs. Wilmington Trust Retirement | State Street vs. Deutsche Multi Asset Moderate |
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.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |