Correlation Between SSgA and Vanguard
Can any of the company-specific risk be diversified away by investing in both SSgA and Vanguard 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 and Vanguard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSgA and Vanguard SP Mid Cap, you can compare the effects of market volatilities on SSgA and Vanguard 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 with a short position of Vanguard. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSgA and Vanguard.
Diversification Opportunities for SSgA and Vanguard
Pay attention - limited upside
The 3 months correlation between SSgA and Vanguard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SSgA and Vanguard SP Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard SP Mid and SSgA 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 are associated (or correlated) with Vanguard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard SP Mid has no effect on the direction of SSgA i.e., SSgA and Vanguard go up and down completely randomly.
Pair Corralation between SSgA and Vanguard
If you would invest 8,909 in Vanguard SP Mid Cap on January 21, 2024 and sell it today you would earn a total of 1,650 from holding Vanguard SP Mid Cap or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SSgA vs. Vanguard SP Mid Cap
Performance |
| Timeline |
| SSgA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Vanguard SP Mid |
SSgA and Vanguard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSgA and Vanguard
The main advantage of trading using opposite SSgA and Vanguard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSgA position performs unexpectedly, Vanguard 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 will offset losses from the drop in Vanguard's long position.| SSgA vs. Vanguard Total Stock | SSgA vs. SPDR SP 500 | SSgA vs. iShares Core SP | SSgA vs. Vanguard Total Bond |
| Vanguard vs. Vanguard SP Mid Cap | Vanguard vs. Vanguard SP Small Cap | Vanguard vs. Vanguard SP Mid Cap | Vanguard vs. Vanguard Russell 2000 |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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