Correlation Between IShares SP and DoubleLine ETF
Can any of the company-specific risk be diversified away by investing in both IShares SP 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 SP 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 SP GSCI and DoubleLine ETF Trust, you can compare the effects of market volatilities on IShares SP 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 SP with a short position of DoubleLine ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares SP and DoubleLine ETF.
Diversification Opportunities for IShares SP and DoubleLine ETF
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and DoubleLine is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding iShares SP GSCI 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 SP 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 SP GSCI 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 SP i.e., IShares SP and DoubleLine ETF go up and down completely randomly.
Pair Corralation between IShares SP and DoubleLine ETF
Considering the 90-day investment horizon iShares SP GSCI is expected to generate 1.2 times more return on investment than DoubleLine ETF. However, IShares SP is 1.2 times more volatile than DoubleLine ETF Trust. It trades about 0.45 of its potential returns per unit of risk. DoubleLine ETF Trust is currently generating about 0.34 per unit of risk. If you would invest 2,128 in iShares SP GSCI on October 22, 2024 and sell it today you would earn a total of 177.00 from holding iShares SP GSCI or generate 8.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares SP GSCI vs. DoubleLine ETF Trust
Performance |
| Timeline |
| iShares SP GSCI |
| DoubleLine ETF Trust |
IShares SP and DoubleLine ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares SP and DoubleLine ETF
The main advantage of trading using opposite IShares SP and DoubleLine ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SP 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 SP vs. Invesco DB Commodity | IShares SP vs. iPath Bloomberg Commodity | IShares SP vs. Invesco DB Base | IShares SP vs. Invesco DB Agriculture |
| DoubleLine ETF vs. Neuberger Berman Commodity | DoubleLine ETF vs. abrdn Bloomberg All | DoubleLine ETF vs. abrdn Bloomberg All | DoubleLine ETF vs. Direxion Auspice Broad |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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