Correlation Between Valued Advisers and SPDR Portfolio

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

By analyzing existing cross correlation between Valued Advisers Trust and SPDR Portfolio Aggregate, you can compare the effects of market volatilities on Valued Advisers and SPDR Portfolio 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 Valued Advisers with a short position of SPDR Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valued Advisers and SPDR Portfolio.

Diversification Opportunities for Valued Advisers and SPDR Portfolio

0.36

Correlation Coefficient

Valued Advisers  SPDR Portfolio

Weak diversification

The 3 months correlation between Valued and SPDR is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Valued Advisers Trust and SPDR Portfolio Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Portfolio Aggregate and Valued Advisers 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 Valued Advisers Trust are associated (or correlated) with SPDR Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Portfolio Aggregate has no effect on the direction of Valued Advisers i.e., Valued Advisers and SPDR Portfolio go up and down completely randomly.

Pair Corralation between Valued Advisers and SPDR Portfolio

Given the investment horizon of 90 days Valued Advisers Trust is expected to generate 0.95 times more return on investment than SPDR Portfolio. However, Valued Advisers Trust is 1.05 times less risky than SPDR Portfolio. It trades about 0.12 of its potential returns per unit of risk. SPDR Portfolio Aggregate is currently generating about 0.08 per unit of risk. If you would invest  2,525  in Valued Advisers Trust on September 5, 2025 and sell it today you would earn a total of  37.00  from holding Valued Advisers Trust or generate 1.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Valued Advisers Trust  vs.  SPDR Portfolio Aggregate

Valued Advisers Trust

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Valued Advisers Trust are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Valued Advisers is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

SPDR Portfolio Aggregate

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Portfolio Aggregate are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, SPDR Portfolio is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Valued Advisers and SPDR Portfolio

The main advantage of trading using opposite Valued Advisers and SPDR Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valued Advisers position performs unexpectedly, SPDR Portfolio 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 Portfolio will offset losses from the drop in SPDR Portfolio's long position.

The idea behind Valued Advisers Trust and SPDR Portfolio Aggregate 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.