Correlation Between SPDR DoubleLine and FFR
Can any of the company-specific risk be diversified away by investing in both SPDR DoubleLine and FFR 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 FFR 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 FFR, you can compare the effects of market volatilities on SPDR DoubleLine and FFR 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 FFR. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR DoubleLine and FFR.
Diversification Opportunities for SPDR DoubleLine and FFR
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and FFR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR DoubleLine Short and FFR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FFR 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 FFR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FFR has no effect on the direction of SPDR DoubleLine i.e., SPDR DoubleLine and FFR go up and down completely randomly.
Pair Corralation between SPDR DoubleLine and FFR
If you would invest 4,653 in SPDR DoubleLine Short on January 25, 2024 and sell it today you would earn a total of 17.00 from holding SPDR DoubleLine Short or generate 0.37% 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. FFR
Performance |
| Timeline |
| SPDR DoubleLine Short |
| FFR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR DoubleLine and FFR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR DoubleLine and FFR
The main advantage of trading using opposite SPDR DoubleLine and FFR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR DoubleLine position performs unexpectedly, FFR 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 FFR will offset losses from the drop in FFR's long position.| SPDR DoubleLine vs. Vanguard Short Term Bond | SPDR DoubleLine vs. iShares 1 5 Year | SPDR DoubleLine vs. SPDR Barclays Short | SPDR DoubleLine vs. iShares Core 1 5 |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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