Correlation Between Vanguard Funds and SSgA SPDR
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By analyzing existing cross correlation between Vanguard Funds Public and SSgA SPDR SP, you can compare the effects of market volatilities on Vanguard Funds and SSgA SPDR 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 Vanguard Funds with a short position of SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Funds and SSgA SPDR.
Diversification Opportunities for Vanguard Funds and SSgA SPDR
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vanguard and SSgA is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Funds Public and SSgA SPDR SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSgA SPDR SP and Vanguard Funds 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 Vanguard Funds Public are associated (or correlated) with SSgA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSgA SPDR SP has no effect on the direction of Vanguard Funds i.e., Vanguard Funds and SSgA SPDR go up and down completely randomly.
Pair Corralation between Vanguard Funds and SSgA SPDR
Assuming the 90 days trading horizon Vanguard Funds Public is expected to generate 0.66 times more return on investment than SSgA SPDR. However, Vanguard Funds Public is 1.51 times less risky than SSgA SPDR. It trades about 0.36 of its potential returns per unit of risk. SSgA SPDR SP is currently generating about 0.09 per unit of risk. If you would invest 9,963 in Vanguard Funds Public on September 4, 2024 and sell it today you would earn a total of 877.00 from holding Vanguard Funds Public or generate 8.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Vanguard Funds Public vs. SSgA SPDR SP
Performance |
| Timeline |
| Vanguard Funds Public |
| SSgA SPDR SP |
Vanguard Funds and SSgA SPDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Funds and SSgA SPDR
The main advantage of trading using opposite Vanguard Funds and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Funds position performs unexpectedly, SSgA SPDR 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 SSgA SPDR will offset losses from the drop in SSgA SPDR's long position.| Vanguard Funds vs. Vanguard ESG Developed | Vanguard Funds vs. Vanguard Funds Public | Vanguard Funds vs. Vanguard Funds Public | Vanguard Funds vs. Vanguard FTSE Developed |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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