Correlation Between SPDR MSCI and Vanguard LifeStrategy
Can any of the company-specific risk be diversified away by investing in both SPDR MSCI and Vanguard LifeStrategy 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 SPDR MSCI and Vanguard LifeStrategy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR MSCI World and Vanguard LifeStrategy 80, you can compare the effects of market volatilities on SPDR MSCI and Vanguard LifeStrategy 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 SPDR MSCI with a short position of Vanguard LifeStrategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR MSCI and Vanguard LifeStrategy.
Diversification Opportunities for SPDR MSCI and Vanguard LifeStrategy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and Vanguard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR MSCI World and Vanguard LifeStrategy 80 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard LifeStrategy and SPDR MSCI 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 SPDR MSCI World are associated (or correlated) with Vanguard LifeStrategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard LifeStrategy has no effect on the direction of SPDR MSCI i.e., SPDR MSCI and Vanguard LifeStrategy go up and down completely randomly.
Pair Corralation between SPDR MSCI and Vanguard LifeStrategy
If you would invest 3,554 in Vanguard LifeStrategy 80 on August 29, 2024 and sell it today you would earn a total of 124.00 from holding Vanguard LifeStrategy 80 or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SPDR MSCI World vs. Vanguard LifeStrategy 80
Performance |
| Timeline |
| SPDR MSCI World |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Vanguard LifeStrategy |
SPDR MSCI and Vanguard LifeStrategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR MSCI and Vanguard LifeStrategy
The main advantage of trading using opposite SPDR MSCI and Vanguard LifeStrategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR MSCI position performs unexpectedly, Vanguard LifeStrategy 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 Vanguard LifeStrategy will offset losses from the drop in Vanguard LifeStrategy's long position.| SPDR MSCI vs. SPDR MSCI World | SPDR MSCI vs. SPDR SP Dividend | SPDR MSCI vs. SPDR SP 500 | SPDR MSCI vs. SPDR BB SB |
| Vanguard LifeStrategy vs. Vanguard FTSE All World | Vanguard LifeStrategy vs. Vanguard FTSE Developed | Vanguard LifeStrategy vs. Vanguard FTSE All World | Vanguard LifeStrategy vs. Vanguard FTSE Developed |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |