Correlation Between XLFS and SPDR DoubleLine
Can any of the company-specific risk be diversified away by investing in both XLFS and SPDR DoubleLine 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 XLFS and SPDR DoubleLine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLFS and SPDR DoubleLine Short, you can compare the effects of market volatilities on XLFS 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 XLFS with a short position of SPDR DoubleLine. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLFS and SPDR DoubleLine.
Diversification Opportunities for XLFS and SPDR DoubleLine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XLFS and SPDR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding XLFS and SPDR DoubleLine Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR DoubleLine Short and XLFS 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 XLFS 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 Short has no effect on the direction of XLFS i.e., XLFS and SPDR DoubleLine go up and down completely randomly.
Pair Corralation between XLFS and SPDR DoubleLine
If you would invest (100.00) in XLFS on January 26, 2024 and sell it today you would earn a total of 100.00 from holding XLFS or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
XLFS vs. SPDR DoubleLine Short
Performance |
| Timeline |
| XLFS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SPDR DoubleLine Short |
XLFS and SPDR DoubleLine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLFS and SPDR DoubleLine
The main advantage of trading using opposite XLFS and SPDR DoubleLine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLFS position performs unexpectedly, SPDR DoubleLine 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 SPDR DoubleLine will offset losses from the drop in SPDR DoubleLine's long position.The idea behind XLFS and SPDR DoubleLine Short pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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