Correlation Between SPDR Bloomberg and SPDR DoubleLine
Can any of the company-specific risk be diversified away by investing in both SPDR Bloomberg 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 Bloomberg 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 Bloomberg 1 10 and SPDR DoubleLine Short, you can compare the effects of market volatilities on SPDR Bloomberg 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 Bloomberg with a short position of SPDR DoubleLine. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Bloomberg and SPDR DoubleLine.
Diversification Opportunities for SPDR Bloomberg and SPDR DoubleLine
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPDR and SPDR is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg 1 10 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 Bloomberg 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 Bloomberg 1 10 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 Bloomberg i.e., SPDR Bloomberg and SPDR DoubleLine go up and down completely randomly.
Pair Corralation between SPDR Bloomberg and SPDR DoubleLine
Given the investment horizon of 90 days SPDR Bloomberg is expected to generate 1.36 times less return on investment than SPDR DoubleLine. In addition to that, SPDR Bloomberg is 1.74 times more volatile than SPDR DoubleLine Short. It trades about 0.13 of its total potential returns per unit of risk. SPDR DoubleLine Short is currently generating about 0.3 per unit of volatility. If you would invest 4,688 in SPDR DoubleLine Short on September 1, 2024 and sell it today you would earn a total of 31.00 from holding SPDR DoubleLine Short or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Bloomberg 1 10 vs. SPDR DoubleLine Short
Performance |
| Timeline |
| SPDR Bloomberg 1 |
| SPDR DoubleLine Short |
SPDR Bloomberg and SPDR DoubleLine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Bloomberg and SPDR DoubleLine
The main advantage of trading using opposite SPDR Bloomberg and SPDR DoubleLine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Bloomberg 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 Bloomberg vs. SPDR Portfolio TIPS | SPDR Bloomberg vs. FlexShares iBoxx 5 Year | SPDR Bloomberg vs. FlexShares iBoxx 3 Year | SPDR Bloomberg vs. PIMCO Broad TIPS |
| SPDR DoubleLine vs. Vanguard Intermediate Term Corporate | SPDR DoubleLine vs. Vanguard Short Term Bond | SPDR DoubleLine vs. Vanguard Long Term Corporate | SPDR DoubleLine vs. Vanguard Short Term Treasury |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |