Correlation Between SPDR DoubleLine and IShares 1
Can any of the company-specific risk be diversified away by investing in both SPDR DoubleLine and IShares 1 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 IShares 1 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 iShares 1 5 Year, you can compare the effects of market volatilities on SPDR DoubleLine and IShares 1 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 IShares 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR DoubleLine and IShares 1.
Diversification Opportunities for SPDR DoubleLine and IShares 1
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPDR and IShares is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding SPDR DoubleLine Short and iShares 1 5 Year in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares 1 5 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 IShares 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares 1 5 has no effect on the direction of SPDR DoubleLine i.e., SPDR DoubleLine and IShares 1 go up and down completely randomly.
Pair Corralation between SPDR DoubleLine and IShares 1
Given the investment horizon of 90 days SPDR DoubleLine Short is expected to generate 0.5 times more return on investment than IShares 1. However, SPDR DoubleLine Short is 1.99 times less risky than IShares 1. It trades about -0.1 of its potential returns per unit of risk. iShares 1 5 Year is currently generating about -0.13 per unit of risk. If you would invest 4,680 in SPDR DoubleLine Short on January 26, 2024 and sell it today you would lose (9.00) from holding SPDR DoubleLine Short or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
SPDR DoubleLine Short vs. iShares 1 5 Year
Performance |
| Timeline |
| SPDR DoubleLine Short |
| iShares 1 5 |
SPDR DoubleLine and IShares 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR DoubleLine and IShares 1
The main advantage of trading using opposite SPDR DoubleLine and IShares 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR DoubleLine position performs unexpectedly, IShares 1 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 IShares 1 will offset losses from the drop in IShares 1'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 |
| IShares 1 vs. iShares 5 10 Year | IShares 1 vs. iShares 0 5 Year | IShares 1 vs. SPDR Barclays Short | IShares 1 vs. iShares Core Total |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |