Correlation Between Virtus ETF and SPDR SSGA
Can any of the company-specific risk be diversified away by investing in both Virtus 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 Virtus 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 Virtus ETF Trust and SPDR SSGA Fixed, you can compare the effects of market volatilities on Virtus 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 Virtus ETF with a short position of SPDR SSGA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus ETF and SPDR SSGA.
Diversification Opportunities for Virtus ETF and SPDR SSGA
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Virtus and SPDR is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Virtus 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 Virtus 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 Virtus 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 Virtus ETF i.e., Virtus ETF and SPDR SSGA go up and down completely randomly.
Pair Corralation between Virtus ETF and SPDR SSGA
Given the investment horizon of 90 days Virtus ETF Trust is expected to generate 1.15 times more return on investment than SPDR SSGA. However, Virtus ETF is 1.15 times more volatile than SPDR SSGA Fixed. It trades about 0.29 of its potential returns per unit of risk. SPDR SSGA Fixed is currently generating about 0.03 per unit of risk. If you would invest 2,521 in Virtus ETF Trust on April 16, 2025 and sell it today you would earn a total of 189.00 from holding Virtus ETF Trust or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus ETF Trust vs. SPDR SSGA Fixed
Performance |
| Timeline |
| Virtus ETF Trust |
| SPDR SSGA Fixed |
Virtus ETF and SPDR SSGA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus ETF and SPDR SSGA
The main advantage of trading using opposite Virtus ETF and SPDR SSGA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus 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.| Virtus ETF vs. Ab Tax Aware Short | Virtus ETF vs. T Rowe Price | Virtus ETF vs. T Rowe Price | Virtus ETF vs. Angel Oak UltraShort |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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