Correlation Between SPDR DoubleLine and ATT
Can any of the company-specific risk be diversified away by investing in both SPDR DoubleLine and ATT 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 ATT 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 ATT Inc, you can compare the effects of market volatilities on SPDR DoubleLine and ATT 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 ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR DoubleLine and ATT.
Diversification Opportunities for SPDR DoubleLine and ATT
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SPDR and ATT is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding SPDR DoubleLine Short and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc 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 ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of SPDR DoubleLine i.e., SPDR DoubleLine and ATT go up and down completely randomly.
Pair Corralation between SPDR DoubleLine and ATT
Given the investment horizon of 90 days SPDR DoubleLine Short is expected to generate 0.08 times more return on investment than ATT. However, SPDR DoubleLine Short is 12.15 times less risky than ATT. It trades about 0.13 of its potential returns per unit of risk. ATT Inc is currently generating about -0.01 per unit of risk. If you would invest 4,638 in SPDR DoubleLine Short on January 26, 2024 and sell it today you would earn a total of 33.00 from holding SPDR DoubleLine Short or generate 0.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SPDR DoubleLine Short vs. ATT Inc
Performance |
Timeline |
SPDR DoubleLine Short |
ATT Inc |
SPDR DoubleLine and ATT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SPDR DoubleLine and ATT
The main advantage of trading using opposite SPDR DoubleLine and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR DoubleLine position performs unexpectedly, ATT 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 ATT will offset losses from the drop in ATT'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 |
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 CEOs Directory module to screen CEOs from public companies around the world.
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