Correlation Between VanEck Multi and SSGA SPDR
Can any of the company-specific risk be diversified away by investing in both VanEck Multi and SSGA SPDR 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 VanEck Multi and SSGA SPDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Multi Asset Growth and SSGA SPDR ETFS, you can compare the effects of market volatilities on VanEck Multi 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 VanEck Multi with a short position of SSGA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Multi and SSGA SPDR.
Diversification Opportunities for VanEck Multi and SSGA SPDR
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between VanEck and SSGA is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Multi Asset Growth and SSGA SPDR ETFS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSGA SPDR ETFS and VanEck Multi 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 VanEck Multi Asset Growth 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 ETFS has no effect on the direction of VanEck Multi i.e., VanEck Multi and SSGA SPDR go up and down completely randomly.
Pair Corralation between VanEck Multi and SSGA SPDR
Assuming the 90 days trading horizon VanEck Multi Asset Growth is expected to under-perform the SSGA SPDR. But the etf apears to be less risky and, when comparing its historical volatility, VanEck Multi Asset Growth is 1.56 times less risky than SSGA SPDR. The etf trades about -0.28 of its potential returns per unit of risk. The SSGA SPDR ETFS is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 3,822 in SSGA SPDR ETFS on September 25, 2024 and sell it today you would lose (26.00) from holding SSGA SPDR ETFS or give up 0.68% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 95.45% |
Values | Daily Returns |
VanEck Multi Asset Growth vs. SSGA SPDR ETFS
Performance |
Timeline |
VanEck Multi Asset |
SSGA SPDR ETFS |
VanEck Multi and SSGA SPDR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with VanEck Multi and SSGA SPDR
The main advantage of trading using opposite VanEck Multi and SSGA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Multi 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.VanEck Multi vs. iShares Core MSCI | VanEck Multi vs. iShares Core MSCI | VanEck Multi vs. iShares MSCI World | VanEck Multi vs. iShares MSCI EM |
SSGA SPDR vs. LG Russell 2000 | SSGA SPDR vs. VanEck Multi Asset Growth | SSGA SPDR vs. iShares III Public | SSGA SPDR vs. iShares Core MSCI |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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