This module allows you to analyze existing cross correlation between DOW and SPDR DoubleLine Shrt Term TR Tact ETF. You can compare the effects of market volatilities on DOW 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 DOW with a short position of SPDR DoubleLine. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and SPDR DoubleLine.
Given the investment horizon of 30 days, DOW is expected to generate 2.95 times more return on investment than SPDR DoubleLine. However, DOW is 2.95 times more volatile than SPDR DoubleLine Shrt Term TR Tact ETF. It trades about 0.05 of its potential returns per unit of risk. SPDR DoubleLine Shrt Term TR Tact ETF is currently generating about 0.04 per unit of risk. If you would invest 2,498,747 in DOW on June 18, 2018 and sell it today you would earn a total of 21,182 from holding DOW or generate 0.85% return on investment over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding DOW and SPDR DoubleLine Shrt Term TR T in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on SPDR DoubleLine Shrt and DOW 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 DOW 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 Shrt has no effect on the direction of DOW i.e. DOW and SPDR DoubleLine go up and down completely randomly.
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