Correlation Between SPDR DoubleLine and ETF Series
Can any of the company-specific risk be diversified away by investing in both SPDR DoubleLine and ETF Series 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 ETF Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR DoubleLine Short and ETF Series Solutions, you can compare the effects of market volatilities on SPDR DoubleLine and ETF Series 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 ETF Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR DoubleLine and ETF Series.
Diversification Opportunities for SPDR DoubleLine and ETF Series
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SPDR and ETF is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding SPDR DoubleLine Short and ETF Series Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETF Series Solutions 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 Short are associated (or correlated) with ETF Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETF Series Solutions has no effect on the direction of SPDR DoubleLine i.e., SPDR DoubleLine and ETF Series go up and down completely randomly.
Pair Corralation between SPDR DoubleLine and ETF Series
Given the investment horizon of 90 days SPDR DoubleLine is expected to generate 2.11 times less return on investment than ETF Series. But when comparing it to its historical volatility, SPDR DoubleLine Short is 2.06 times less risky than ETF Series. It trades about 0.25 of its potential returns per unit of risk. ETF Series Solutions is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,667 in ETF Series Solutions on September 15, 2024 and sell it today you would earn a total of 29.00 from holding ETF Series Solutions or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SPDR DoubleLine Short vs. ETF Series Solutions
Performance |
| Timeline |
| SPDR DoubleLine Short |
| ETF Series Solutions |
SPDR DoubleLine and ETF Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR DoubleLine and ETF Series
The main advantage of trading using opposite SPDR DoubleLine and ETF Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR DoubleLine position performs unexpectedly, ETF Series 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 ETF Series will offset losses from the drop in ETF Series' long position.| 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 |
| ETF Series vs. SPDR Bloomberg Barclays | ETF Series vs. SPDR SSGA Fixed | ETF Series vs. SPDR DoubleLine Short | ETF Series vs. SPDR Portfolio Corporate |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |