Correlation Between DSJA and SPDR DoubleLine
Can any of the company-specific risk be diversified away by investing in both DSJA and SPDR DoubleLine 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 DSJA and SPDR DoubleLine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSJA and SPDR DoubleLine Total, you can compare the effects of market volatilities on DSJA and SPDR DoubleLine 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 DSJA with a short position of SPDR DoubleLine. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSJA and SPDR DoubleLine.
Diversification Opportunities for DSJA and SPDR DoubleLine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DSJA and SPDR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DSJA and SPDR DoubleLine Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR DoubleLine Total and DSJA 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 DSJA are associated (or correlated) with SPDR DoubleLine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR DoubleLine Total has no effect on the direction of DSJA i.e., DSJA and SPDR DoubleLine go up and down completely randomly.
Pair Corralation between DSJA and SPDR DoubleLine
If you would invest 3,644 in SPDR DoubleLine Total on November 19, 2024 and sell it today you would earn a total of 332.00 from holding SPDR DoubleLine Total or generate 9.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
DSJA vs. SPDR DoubleLine Total
Performance |
| Timeline |
| DSJA |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| SPDR DoubleLine Total |
DSJA and SPDR DoubleLine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSJA and SPDR DoubleLine
The main advantage of trading using opposite DSJA and SPDR DoubleLine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSJA position performs unexpectedly, SPDR DoubleLine 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 DoubleLine will offset losses from the drop in SPDR DoubleLine's long position.The idea behind DSJA and SPDR DoubleLine Total 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.| SPDR DoubleLine vs. PIMCO Active Bond | SPDR DoubleLine vs. SPDR Blackstone Senior | SPDR DoubleLine vs. SPDR Barclays Intermediate | SPDR DoubleLine vs. SPDR Bloomberg Investment |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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