Correlation Between SPDR SP and DoubleLine ETF
Can any of the company-specific risk be diversified away by investing in both SPDR 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 SPDR 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 SPDR SP 500 and DoubleLine ETF Trust, you can compare the effects of market volatilities on SPDR 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 SPDR SP with a short position of DoubleLine ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and DoubleLine ETF.
Diversification Opportunities for SPDR SP and DoubleLine ETF
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and DoubleLine is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP 500 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 SPDR 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 SPDR SP 500 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 SPDR SP i.e., SPDR SP and DoubleLine ETF go up and down completely randomly.
Pair Corralation between SPDR SP and DoubleLine ETF
Considering the 90-day investment horizon SPDR SP 500 is expected to generate 0.93 times more return on investment than DoubleLine ETF. However, SPDR SP 500 is 1.07 times less risky than DoubleLine ETF. It trades about 0.14 of its potential returns per unit of risk. DoubleLine ETF Trust is currently generating about 0.12 per unit of risk. If you would invest 40,430 in SPDR SP 500 on August 30, 2024 and sell it today you would earn a total of 19,453 from holding SPDR SP 500 or generate 48.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 53.05% |
| Values | Daily Returns |
SPDR SP 500 vs. DoubleLine ETF Trust
Performance |
| Timeline |
| SPDR SP 500 |
| DoubleLine ETF Trust |
SPDR SP and DoubleLine ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and DoubleLine ETF
The main advantage of trading using opposite SPDR SP and DoubleLine ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR 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.| SPDR SP vs. FT Vest Equity | SPDR SP vs. Northern Lights | SPDR SP vs. Dimensional International High | SPDR SP vs. First Trust Exchange Traded |
| DoubleLine ETF vs. JPMorgan BetaBuilders International | DoubleLine ETF vs. JPMorgan Core Plus | DoubleLine ETF vs. JPMorgan BetaBuilders Canada | DoubleLine ETF vs. JPMorgan Emerging Markets |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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