Correlation Between SPDR DoubleLine and Vanguard Core
Can any of the company-specific risk be diversified away by investing in both SPDR DoubleLine and Vanguard Core 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 Vanguard Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR DoubleLine Total and Vanguard Core Plus, you can compare the effects of market volatilities on SPDR DoubleLine and Vanguard Core 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 Vanguard Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR DoubleLine and Vanguard Core.
Diversification Opportunities for SPDR DoubleLine and Vanguard Core
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between SPDR and Vanguard is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding SPDR DoubleLine Total and Vanguard Core Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Core Plus 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 Total are associated (or correlated) with Vanguard Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Core Plus has no effect on the direction of SPDR DoubleLine i.e., SPDR DoubleLine and Vanguard Core go up and down completely randomly.
Pair Corralation between SPDR DoubleLine and Vanguard Core
Given the investment horizon of 90 days SPDR DoubleLine Total is expected to generate 1.07 times more return on investment than Vanguard Core. However, SPDR DoubleLine is 1.07 times more volatile than Vanguard Core Plus. It trades about 0.23 of its potential returns per unit of risk. Vanguard Core Plus is currently generating about 0.21 per unit of risk. If you would invest 3,943 in SPDR DoubleLine Total on December 6, 2024 and sell it today you would earn a total of 64.50 from holding SPDR DoubleLine Total or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR DoubleLine Total vs. Vanguard Core Plus
Performance |
| Timeline |
| SPDR DoubleLine Total |
| Vanguard Core Plus |
SPDR DoubleLine and Vanguard Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR DoubleLine and Vanguard Core
The main advantage of trading using opposite SPDR DoubleLine and Vanguard Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR DoubleLine position performs unexpectedly, Vanguard Core 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 Vanguard Core will offset losses from the drop in Vanguard Core's long position.| SPDR DoubleLine vs. PIMCO Active Bond | SPDR DoubleLine vs. SPDR Blackstone Senior | SPDR DoubleLine vs. SPDR Barclays Intermediate | SPDR DoubleLine vs. SPDR Bloomberg Investment |
| Vanguard Core vs. Columbia Diversified Fixed | Vanguard Core vs. MFS Active Core | Vanguard Core vs. Doubleline Etf Trust | Vanguard Core vs. Virtus Newfleet ABSMBS |
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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