Correlation Between SPDR Portfolio and SPDR DoubleLine
Can any of the company-specific risk be diversified away by investing in both SPDR Portfolio 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 Portfolio 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 Portfolio Corporate and SPDR DoubleLine Short, you can compare the effects of market volatilities on SPDR Portfolio 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 Portfolio with a short position of SPDR DoubleLine. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Portfolio and SPDR DoubleLine.
Diversification Opportunities for SPDR Portfolio and SPDR DoubleLine
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPDR and SPDR is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Portfolio Corporate 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 Portfolio 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 Portfolio Corporate 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 Portfolio i.e., SPDR Portfolio and SPDR DoubleLine go up and down completely randomly.
Pair Corralation between SPDR Portfolio and SPDR DoubleLine
Given the investment horizon of 90 days SPDR Portfolio Corporate is expected to under-perform the SPDR DoubleLine. In addition to that, SPDR Portfolio is 3.55 times more volatile than SPDR DoubleLine Short. It trades about -0.16 of its total potential returns per unit of risk. SPDR DoubleLine Short is currently generating about 0.01 per unit of volatility. If you would invest 4,698 in SPDR DoubleLine Short on August 26, 2024 and sell it today you would earn a total of 2.00 from holding SPDR DoubleLine Short or generate 0.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Portfolio Corporate vs. SPDR DoubleLine Short
Performance |
| Timeline |
| SPDR Portfolio Corporate |
| SPDR DoubleLine Short |
SPDR Portfolio and SPDR DoubleLine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Portfolio and SPDR DoubleLine
The main advantage of trading using opposite SPDR Portfolio and SPDR DoubleLine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Portfolio 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 Portfolio vs. Senstar Technologies | SPDR Portfolio vs. ImmuCell | SPDR Portfolio vs. Anika Therapeutics | SPDR Portfolio vs. Aquagold International |
| SPDR DoubleLine vs. Dimensional ETF Trust | SPDR DoubleLine vs. Dimensional ETF Trust | SPDR DoubleLine vs. Dimensional Core Equity | SPDR DoubleLine vs. Dimensional ETF Trust |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |