Correlation Between SPDR DoubleLine and Fidelity Limited
Can any of the company-specific risk be diversified away by investing in both SPDR DoubleLine and Fidelity Limited 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 Fidelity Limited 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 Fidelity Limited Term, you can compare the effects of market volatilities on SPDR DoubleLine and Fidelity Limited 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 Fidelity Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR DoubleLine and Fidelity Limited.
Diversification Opportunities for SPDR DoubleLine and Fidelity Limited
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPDR and Fidelity is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding SPDR DoubleLine Short and Fidelity Limited Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Limited Term 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 Fidelity Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Limited Term has no effect on the direction of SPDR DoubleLine i.e., SPDR DoubleLine and Fidelity Limited go up and down completely randomly.
Pair Corralation between SPDR DoubleLine and Fidelity Limited
Given the investment horizon of 90 days SPDR DoubleLine Short is expected to generate 0.56 times more return on investment than Fidelity Limited. However, SPDR DoubleLine Short is 1.79 times less risky than Fidelity Limited. It trades about 0.13 of its potential returns per unit of risk. Fidelity Limited Term is currently generating about 0.0 per unit of risk. If you would invest 4,638 in SPDR DoubleLine Short on January 26, 2024 and sell it today you would earn a total of 33.00 from holding SPDR DoubleLine Short or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
SPDR DoubleLine Short vs. Fidelity Limited Term
Performance |
| Timeline |
| SPDR DoubleLine Short |
| Fidelity Limited Term |
SPDR DoubleLine and Fidelity Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR DoubleLine and Fidelity Limited
The main advantage of trading using opposite SPDR DoubleLine and Fidelity Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR DoubleLine position performs unexpectedly, Fidelity Limited 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 Fidelity Limited will offset losses from the drop in Fidelity Limited's 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 |
| Fidelity Limited vs. Fidelity Corporate Bond | Fidelity Limited vs. Fidelity Total Bond | Fidelity Limited vs. Fidelity High Yield | Fidelity Limited vs. Fidelity Momentum Factor |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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