Correlation Between SPDR DoubleLine and SPDR DoubleLine
Can any of the company-specific risk be diversified away by investing in both SPDR DoubleLine 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 SPDR DoubleLine and SPDR DoubleLine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR DoubleLine Emerging and SPDR DoubleLine Short, you can compare the effects of market volatilities on SPDR DoubleLine 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 SPDR DoubleLine with a short position of SPDR DoubleLine. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR DoubleLine and SPDR DoubleLine.
Diversification Opportunities for SPDR DoubleLine and SPDR DoubleLine
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPDR and SPDR is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding SPDR DoubleLine Emerging and SPDR DoubleLine Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR DoubleLine Short and SPDR DoubleLine 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 DoubleLine Emerging 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 Short has no effect on the direction of SPDR DoubleLine i.e., SPDR DoubleLine and SPDR DoubleLine go up and down completely randomly.
Pair Corralation between SPDR DoubleLine and SPDR DoubleLine
Given the investment horizon of 90 days SPDR DoubleLine is expected to generate 11.91 times less return on investment than SPDR DoubleLine. In addition to that, SPDR DoubleLine is 1.47 times more volatile than SPDR DoubleLine Short. It trades about 0.01 of its total potential returns per unit of risk. SPDR DoubleLine Short is currently generating about 0.26 per unit of volatility. If you would invest 4,687 in SPDR DoubleLine Short on August 30, 2024 and sell it today you would earn a total of 27.00 from holding SPDR DoubleLine Short or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR DoubleLine Emerging vs. SPDR DoubleLine Short
Performance |
| Timeline |
| SPDR DoubleLine Emerging |
| SPDR DoubleLine Short |
SPDR DoubleLine and SPDR DoubleLine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR DoubleLine and SPDR DoubleLine
The main advantage of trading using opposite SPDR DoubleLine and SPDR DoubleLine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR DoubleLine 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.| SPDR DoubleLine vs. SPDR DoubleLine Short | SPDR DoubleLine vs. SPDR SSgA Ultra | SPDR DoubleLine vs. SPDR MSCI Emerging | SPDR DoubleLine vs. SPDR Bloomberg International |
| SPDR DoubleLine vs. SPDR DoubleLine Emerging | SPDR DoubleLine vs. SPDR SSgA Ultra | SPDR DoubleLine vs. SPDR Bloomberg 1 10 | SPDR DoubleLine vs. SPDR DoubleLine Total |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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