Correlation Between SPDR DoubleLine and Boeing
Can any of the company-specific risk be diversified away by investing in both SPDR DoubleLine and Boeing 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 Boeing 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 The Boeing, you can compare the effects of market volatilities on SPDR DoubleLine and Boeing 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 Boeing. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR DoubleLine and Boeing.
Diversification Opportunities for SPDR DoubleLine and Boeing
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and Boeing is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding SPDR DoubleLine Short and The Boeing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boeing 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 Boeing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boeing has no effect on the direction of SPDR DoubleLine i.e., SPDR DoubleLine and Boeing go up and down completely randomly.
Pair Corralation between SPDR DoubleLine and Boeing
Given the investment horizon of 90 days SPDR DoubleLine Short is expected to generate 0.07 times more return on investment than Boeing. However, SPDR DoubleLine Short is 14.38 times less risky than Boeing. It trades about -0.07 of its potential returns per unit of risk. The Boeing is currently generating about -0.54 per unit of risk. If you would invest 4,676 in SPDR DoubleLine Short on January 25, 2024 and sell it today you would lose (6.00) from holding SPDR DoubleLine Short or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR DoubleLine Short vs. The Boeing
Performance |
| Timeline |
| SPDR DoubleLine Short |
| Boeing |
SPDR DoubleLine and Boeing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR DoubleLine and Boeing
The main advantage of trading using opposite SPDR DoubleLine and Boeing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR DoubleLine position performs unexpectedly, Boeing 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 Boeing will offset losses from the drop in Boeing'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 |
| Boeing vs. HEICO | Boeing vs. L3Harris Technologies | Boeing vs. Huntington Ingalls Industries | Boeing vs. Lockheed Martin |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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