Correlation Between Vulcan Value and SSGA Active
Can any of the company-specific risk be diversified away by investing in both Vulcan Value and SSGA Active 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 Vulcan Value and SSGA Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vulcan Value Partners and SSGA Active Trust, you can compare the effects of market volatilities on Vulcan Value and SSGA Active 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 Vulcan Value with a short position of SSGA Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vulcan Value and SSGA Active.
Diversification Opportunities for Vulcan Value and SSGA Active
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vulcan and SSGA is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Vulcan Value Partners and SSGA Active Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSGA Active Trust and Vulcan Value 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 Vulcan Value Partners are associated (or correlated) with SSGA Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSGA Active Trust has no effect on the direction of Vulcan Value i.e., Vulcan Value and SSGA Active go up and down completely randomly.
Pair Corralation between Vulcan Value and SSGA Active
Assuming the 90 days horizon Vulcan Value Partners is expected to generate 3.32 times more return on investment than SSGA Active. However, Vulcan Value is 3.32 times more volatile than SSGA Active Trust. It trades about 0.3 of its potential returns per unit of risk. SSGA Active Trust is currently generating about 0.22 per unit of risk. If you would invest 2,731 in Vulcan Value Partners on September 4, 2024 and sell it today you would earn a total of 139.00 from holding Vulcan Value Partners or generate 5.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vulcan Value Partners vs. SSGA Active Trust
Performance |
| Timeline |
| Vulcan Value Partners |
| SSGA Active Trust |
Vulcan Value and SSGA Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vulcan Value and SSGA Active
The main advantage of trading using opposite Vulcan Value and SSGA Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vulcan Value position performs unexpectedly, SSGA Active 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 Active will offset losses from the drop in SSGA Active's long position.| Vulcan Value vs. Vulcan Value Partners | Vulcan Value vs. FT Vest Equity | Vulcan Value vs. Zillow Group Class | Vulcan Value vs. Northern Lights |
| SSGA Active vs. BlackRock Intermediate Muni | SSGA Active vs. SSGA Active Trust | SSGA Active vs. SPDR MarketAxess Investment | SSGA Active 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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