Correlation Between SPDR DoubleLine and Hartford Total
Can any of the company-specific risk be diversified away by investing in both SPDR DoubleLine and Hartford Total 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 Hartford Total 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 Hartford Total Return, you can compare the effects of market volatilities on SPDR DoubleLine and Hartford Total 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 Hartford Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR DoubleLine and Hartford Total.
Diversification Opportunities for SPDR DoubleLine and Hartford Total
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between SPDR and Hartford is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding SPDR DoubleLine Short and Hartford Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Total Return 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 Hartford Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Total Return has no effect on the direction of SPDR DoubleLine i.e., SPDR DoubleLine and Hartford Total go up and down completely randomly.
Pair Corralation between SPDR DoubleLine and Hartford Total
Given the investment horizon of 90 days SPDR DoubleLine Short is expected to generate 0.2 times more return on investment than Hartford Total. However, SPDR DoubleLine Short is 4.91 times less risky than Hartford Total. It trades about -0.1 of its potential returns per unit of risk. Hartford Total Return is currently generating about -0.24 per unit of risk. If you would invest 4,680 in SPDR DoubleLine Short on January 26, 2024 and sell it today you would lose (9.00) from holding SPDR DoubleLine Short or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR DoubleLine Short vs. Hartford Total Return
Performance |
| Timeline |
| SPDR DoubleLine Short |
| Hartford Total Return |
SPDR DoubleLine and Hartford Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR DoubleLine and Hartford Total
The main advantage of trading using opposite SPDR DoubleLine and Hartford Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR DoubleLine position performs unexpectedly, Hartford Total 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 Hartford Total will offset losses from the drop in Hartford Total'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 |
| Hartford Total vs. Fidelity Corporate Bond | Hartford Total vs. Fidelity Limited Term | Hartford Total vs. Fidelity High Yield | Hartford Total vs. Fidelity High Dividend |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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