Correlation Between IShares Commodity and DoubleLine ETF
Can any of the company-specific risk be diversified away by investing in both IShares Commodity and DoubleLine ETF 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 IShares Commodity and DoubleLine ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Commodity Curve and DoubleLine ETF Trust, you can compare the effects of market volatilities on IShares Commodity and DoubleLine ETF 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 IShares Commodity with a short position of DoubleLine ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Commodity and DoubleLine ETF.
Diversification Opportunities for IShares Commodity and DoubleLine ETF
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and DoubleLine is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding iShares Commodity Curve and DoubleLine ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DoubleLine ETF Trust and IShares Commodity 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 iShares Commodity Curve are associated (or correlated) with DoubleLine ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DoubleLine ETF Trust has no effect on the direction of IShares Commodity i.e., IShares Commodity and DoubleLine ETF go up and down completely randomly.
Pair Corralation between IShares Commodity and DoubleLine ETF
Given the investment horizon of 90 days IShares Commodity is expected to generate 1.29 times less return on investment than DoubleLine ETF. But when comparing it to its historical volatility, iShares Commodity Curve is 1.68 times less risky than DoubleLine ETF. It trades about 0.4 of its potential returns per unit of risk. DoubleLine ETF Trust is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 2,532 in DoubleLine ETF Trust on October 25, 2024 and sell it today you would earn a total of 117.00 from holding DoubleLine ETF Trust or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Commodity Curve vs. DoubleLine ETF Trust
Performance |
| Timeline |
| iShares Commodity Curve |
| DoubleLine ETF Trust |
IShares Commodity and DoubleLine ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Commodity and DoubleLine ETF
The main advantage of trading using opposite IShares Commodity and DoubleLine ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Commodity position performs unexpectedly, DoubleLine ETF 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 DoubleLine ETF will offset losses from the drop in DoubleLine ETF's long position.| IShares Commodity vs. iShares Bloomberg Roll | IShares Commodity vs. USCF SummerHaven Dynamic | IShares Commodity vs. abrdn Bloomberg All | IShares Commodity vs. GraniteShares Bloomberg Commodity |
| DoubleLine ETF vs. Freedom Day Dividend | DoubleLine ETF vs. Franklin Templeton ETF | DoubleLine ETF vs. iShares MSCI China | DoubleLine ETF vs. Tidal Trust II |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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