Correlation Between SPDR Blackstone and SPDR DoubleLine
Can any of the company-specific risk be diversified away by investing in both SPDR Blackstone 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 Blackstone 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 Blackstone Senior and SPDR DoubleLine Total, you can compare the effects of market volatilities on SPDR Blackstone 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 Blackstone with a short position of SPDR DoubleLine. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Blackstone and SPDR DoubleLine.
Diversification Opportunities for SPDR Blackstone and SPDR DoubleLine
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and SPDR is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Blackstone Senior 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 SPDR Blackstone 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 Blackstone Senior 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 SPDR Blackstone i.e., SPDR Blackstone and SPDR DoubleLine go up and down completely randomly.
Pair Corralation between SPDR Blackstone and SPDR DoubleLine
Given the investment horizon of 90 days SPDR Blackstone Senior is expected to generate 0.43 times more return on investment than SPDR DoubleLine. However, SPDR Blackstone Senior is 2.32 times less risky than SPDR DoubleLine. It trades about 0.31 of its potential returns per unit of risk. SPDR DoubleLine Total is currently generating about -0.03 per unit of risk. If you would invest 4,162 in SPDR Blackstone Senior on August 27, 2024 and sell it today you would earn a total of 36.00 from holding SPDR Blackstone Senior or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Blackstone Senior vs. SPDR DoubleLine Total
Performance |
| Timeline |
| SPDR Blackstone Senior |
| SPDR DoubleLine Total |
SPDR Blackstone and SPDR DoubleLine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Blackstone and SPDR DoubleLine
The main advantage of trading using opposite SPDR Blackstone and SPDR DoubleLine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Blackstone 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 Blackstone vs. Invesco Senior Loan | SPDR Blackstone vs. First Trust Senior | SPDR Blackstone vs. SPDR Bloomberg Short | SPDR Blackstone vs. SPDR Bloomberg 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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