Correlation Between SPDR DoubleLine and IShares Core
Can any of the company-specific risk be diversified away by investing in both SPDR DoubleLine and IShares Core 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 Core 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 Core Total, you can compare the effects of market volatilities on SPDR DoubleLine and IShares Core 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 Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR DoubleLine and IShares Core.
Diversification Opportunities for SPDR DoubleLine and IShares Core
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR DoubleLine Short and iShares Core Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core Total 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 Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core Total has no effect on the direction of SPDR DoubleLine i.e., SPDR DoubleLine and IShares Core go up and down completely randomly.
Pair Corralation between SPDR DoubleLine and IShares Core
Given the investment horizon of 90 days SPDR DoubleLine Short is expected to generate 0.24 times more return on investment than IShares Core. However, SPDR DoubleLine Short is 4.1 times less risky than IShares Core. It trades about -0.16 of its potential returns per unit of risk. iShares Core Total is currently generating about -0.21 per unit of risk. If you would invest 4,681 in SPDR DoubleLine Short on January 20, 2024 and sell it today you would lose (15.00) from holding SPDR DoubleLine Short or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR DoubleLine Short vs. iShares Core Total
Performance |
| Timeline |
| SPDR DoubleLine Short |
| iShares Core Total |
SPDR DoubleLine and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR DoubleLine and IShares Core
The main advantage of trading using opposite SPDR DoubleLine and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR DoubleLine position performs unexpectedly, IShares Core 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 Core will offset losses from the drop in IShares Core'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 |
| IShares Core vs. SPDR SSGA Sector | IShares Core vs. SPDR DoubleLine Emerging | IShares Core vs. SPDR DoubleLine Short | IShares Core vs. SPDR SSgA Ultra |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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