Correlation Between SPDR SSGA and T Rowe

Can any of the company-specific risk be diversified away by investing in both SPDR SSGA and T Rowe 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 SSGA and T Rowe into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SPDR SSGA Large and T Rowe Price, you can compare the effects of market volatilities on SPDR SSGA and T Rowe 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 SSGA with a short position of T Rowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SSGA and T Rowe.

Diversification Opportunities for SPDR SSGA and T Rowe

0.0

Correlation Coefficient

SPDR SSGA  T Rowe

Pay attention - limited upside

The 3 months correlation between SPDR and TCAF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SSGA Large and T Rowe Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Rowe Price and SPDR 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 SPDR SSGA Large are associated (or correlated) with T Rowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Rowe Price has no effect on the direction of SPDR SSGA i.e., SPDR SSGA and T Rowe go up and down completely randomly.

Pair Corralation between SPDR SSGA and T Rowe

If you would invest  16,985  in SPDR SSGA Large on May 14, 2025 and sell it today you would earn a total of  536.00  from holding SPDR SSGA Large or generate 3.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SPDR SSGA Large  vs.  T Rowe Price

SPDR SSGA Large

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR SSGA Large are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable essential indicators, SPDR SSGA is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

T Rowe Price

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in T Rowe Price are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, T Rowe may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with SPDR SSGA and T Rowe

The main advantage of trading using opposite SPDR SSGA and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SSGA position performs unexpectedly, T Rowe 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 T Rowe will offset losses from the drop in T Rowe's long position.

The idea behind SPDR SSGA Large and T Rowe Price pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.