Correlation Between TCW ETF and SPDR SSGA
Can any of the company-specific risk be diversified away by investing in both TCW ETF and SPDR SSGA 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 TCW ETF and SPDR SSGA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TCW ETF Trust and SPDR SSGA Fixed, you can compare the effects of market volatilities on TCW ETF and SPDR SSGA 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 TCW ETF with a short position of SPDR SSGA. Check out your portfolio center. Please also check ongoing floating volatility patterns of TCW ETF and SPDR SSGA.
Diversification Opportunities for TCW ETF and SPDR SSGA
Very poor diversification
The 3 months correlation between TCW and SPDR is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding TCW ETF Trust and SPDR SSGA Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SSGA Fixed and TCW ETF 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 TCW ETF Trust are associated (or correlated) with SPDR SSGA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SSGA Fixed has no effect on the direction of TCW ETF i.e., TCW ETF and SPDR SSGA go up and down completely randomly.
Pair Corralation between TCW ETF and SPDR SSGA
Given the investment horizon of 90 days TCW ETF Trust is expected to generate 0.63 times more return on investment than SPDR SSGA. However, TCW ETF Trust is 1.58 times less risky than SPDR SSGA. It trades about 0.25 of its potential returns per unit of risk. SPDR SSGA Fixed is currently generating about 0.11 per unit of risk. If you would invest 4,912 in TCW ETF Trust on June 5, 2025 and sell it today you would earn a total of 145.00 from holding TCW ETF Trust or generate 2.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
TCW ETF Trust vs. SPDR SSGA Fixed
Performance |
| Timeline |
| TCW ETF Trust |
| SPDR SSGA Fixed |
TCW ETF and SPDR SSGA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TCW ETF and SPDR SSGA
The main advantage of trading using opposite TCW ETF and SPDR SSGA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TCW ETF position performs unexpectedly, SPDR SSGA 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 SPDR SSGA will offset losses from the drop in SPDR SSGA's long position.| TCW ETF vs. Valued Advisers Trust | TCW ETF vs. Columbia Diversified Fixed | TCW ETF vs. Principal Exchange Traded Funds | TCW ETF vs. MFS Active Core |
| SPDR SSGA vs. SPDR SSGA Sector | SPDR SSGA vs. SPDR DoubleLine Emerging | SPDR SSGA vs. SPDR DoubleLine Short | SPDR SSGA vs. SPDR SSgA Ultra |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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