Correlation Between SPDR DoubleLine and Fm Opportunistic
Can any of the company-specific risk be diversified away by investing in both SPDR DoubleLine and Fm Opportunistic 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 Fm Opportunistic 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 Fm Opportunistic Income, you can compare the effects of market volatilities on SPDR DoubleLine and Fm Opportunistic 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 Fm Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR DoubleLine and Fm Opportunistic.
Diversification Opportunities for SPDR DoubleLine and Fm Opportunistic
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and XFIX is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding SPDR DoubleLine Total and Fm Opportunistic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fm Opportunistic Income 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 Fm Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fm Opportunistic Income has no effect on the direction of SPDR DoubleLine i.e., SPDR DoubleLine and Fm Opportunistic go up and down completely randomly.
Pair Corralation between SPDR DoubleLine and Fm Opportunistic
Given the investment horizon of 90 days SPDR DoubleLine is expected to generate 1.67 times less return on investment than Fm Opportunistic. In addition to that, SPDR DoubleLine is 1.15 times more volatile than Fm Opportunistic Income. It trades about 0.11 of its total potential returns per unit of risk. Fm Opportunistic Income is currently generating about 0.22 per unit of volatility. If you would invest 5,192 in Fm Opportunistic Income on September 1, 2024 and sell it today you would earn a total of 78.00 from holding Fm Opportunistic Income or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
SPDR DoubleLine Total vs. Fm Opportunistic Income
Performance |
| Timeline |
| SPDR DoubleLine Total |
| Fm Opportunistic Income |
SPDR DoubleLine and Fm Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR DoubleLine and Fm Opportunistic
The main advantage of trading using opposite SPDR DoubleLine and Fm Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR DoubleLine position performs unexpectedly, Fm Opportunistic 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 Fm Opportunistic will offset losses from the drop in Fm Opportunistic'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 |
| Fm Opportunistic vs. Valued Advisers Trust | Fm Opportunistic vs. Columbia Diversified Fixed | Fm Opportunistic vs. Principal Exchange Traded Funds | Fm Opportunistic vs. Doubleline Etf Trust |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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