Correlation Between Ssga Sp and Ycg Enhanced
Can any of the company-specific risk be diversified away by investing in both Ssga Sp and Ycg Enhanced 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 Sp and Ycg Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssga Sp 500 and Ycg Enhanced Fund, you can compare the effects of market volatilities on Ssga Sp and Ycg Enhanced 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 Sp with a short position of Ycg Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssga Sp and Ycg Enhanced.
Diversification Opportunities for Ssga Sp and Ycg Enhanced
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ssga and Ycg is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ssga Sp 500 and Ycg Enhanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ycg Enhanced and Ssga Sp 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 Sp 500 are associated (or correlated) with Ycg Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ycg Enhanced has no effect on the direction of Ssga Sp i.e., Ssga Sp and Ycg Enhanced go up and down completely randomly.
Pair Corralation between Ssga Sp and Ycg Enhanced
Assuming the 90 days horizon Ssga Sp is expected to generate 1.05 times less return on investment than Ycg Enhanced. In addition to that, Ssga Sp is 1.19 times more volatile than Ycg Enhanced Fund. It trades about 0.34 of its total potential returns per unit of risk. Ycg Enhanced Fund is currently generating about 0.43 per unit of volatility. If you would invest 3,166 in Ycg Enhanced Fund on September 2, 2024 and sell it today you would earn a total of 181.00 from holding Ycg Enhanced Fund or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssga Sp 500 vs. Ycg Enhanced Fund
Performance |
| Timeline |
| Ssga Sp 500 |
| Ycg Enhanced |
Ssga Sp and Ycg Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssga Sp and Ycg Enhanced
The main advantage of trading using opposite Ssga Sp and Ycg Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssga Sp position performs unexpectedly, Ycg Enhanced 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 Ycg Enhanced will offset losses from the drop in Ycg Enhanced's long position.| Ssga Sp vs. State Street Target | Ssga Sp vs. State Street Target | Ssga Sp vs. Ssga International Stock | Ssga Sp vs. State Street Aggregate |
| Ycg Enhanced vs. Conestoga Smid Cap | Ycg Enhanced vs. Fam Equity Income Fund | Ycg Enhanced vs. Matthew 25 Fund | Ycg Enhanced vs. Df Dent Premier |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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