Correlation Between SPDR DoubleLine and IndexIQ
Can any of the company-specific risk be diversified away by investing in both SPDR DoubleLine and IndexIQ 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 IndexIQ 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 IndexIQ, you can compare the effects of market volatilities on SPDR DoubleLine and IndexIQ 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 IndexIQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR DoubleLine and IndexIQ.
Diversification Opportunities for SPDR DoubleLine and IndexIQ
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and IndexIQ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR DoubleLine Short and IndexIQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IndexIQ 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 IndexIQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IndexIQ has no effect on the direction of SPDR DoubleLine i.e., SPDR DoubleLine and IndexIQ go up and down completely randomly.
Pair Corralation between SPDR DoubleLine and IndexIQ
If you would invest 4,442 in SPDR DoubleLine Short on January 20, 2024 and sell it today you would earn a total of 224.00 from holding SPDR DoubleLine Short or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SPDR DoubleLine Short vs. IndexIQ
Performance |
| Timeline |
| SPDR DoubleLine Short |
| IndexIQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR DoubleLine and IndexIQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR DoubleLine and IndexIQ
The main advantage of trading using opposite SPDR DoubleLine and IndexIQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR DoubleLine position performs unexpectedly, IndexIQ 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 IndexIQ will offset losses from the drop in IndexIQ's long position.| SPDR DoubleLine vs. Vanguard Intermediate Term Bond | SPDR DoubleLine vs. Vanguard Long Term Bond | SPDR DoubleLine vs. Vanguard Total Bond | SPDR DoubleLine vs. Vanguard Intermediate Term Corporate |
| IndexIQ vs. Vanguard Total Stock | IndexIQ vs. SPDR SP 500 | IndexIQ vs. iShares Core SP | IndexIQ vs. Vanguard Total Bond |
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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