Correlation Between Ssga International and Value Line
Can any of the company-specific risk be diversified away by investing in both Ssga International and Value Line 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 International and Value Line into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssga International Stock and Value Line Premier, you can compare the effects of market volatilities on Ssga International and Value Line 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 International with a short position of Value Line. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssga International and Value Line.
Diversification Opportunities for Ssga International and Value Line
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ssga and Value is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ssga International Stock and Value Line Premier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Line Premier and Ssga International 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 International Stock are associated (or correlated) with Value Line. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Line Premier has no effect on the direction of Ssga International i.e., Ssga International and Value Line go up and down completely randomly.
Pair Corralation between Ssga International and Value Line
Assuming the 90 days horizon Ssga International Stock is expected to generate 0.79 times more return on investment than Value Line. However, Ssga International Stock is 1.27 times less risky than Value Line. It trades about 0.06 of its potential returns per unit of risk. Value Line Premier is currently generating about 0.05 per unit of risk. If you would invest 894.00 in Ssga International Stock on August 30, 2024 and sell it today you would earn a total of 238.00 from holding Ssga International Stock or generate 26.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssga International Stock vs. Value Line Premier
Performance |
| Timeline |
| Ssga International Stock |
| Value Line Premier |
Ssga International and Value Line Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssga International and Value Line
The main advantage of trading using opposite Ssga International and Value Line positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssga International position performs unexpectedly, Value Line 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 Value Line will offset losses from the drop in Value Line's long position.| Ssga International vs. HUMANA INC | Ssga International vs. Aquagold International | Ssga International vs. Barloworld Ltd ADR | Ssga International vs. Morningstar Unconstrained Allocation |
| Value Line vs. Value Line Larger | Value Line vs. Value Line Small | Value Line vs. Value Line Mid | Value Line vs. Value Line Income |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |