Correlation Between SPDR DoubleLine and BSAE

Can any of the company-specific risk be diversified away by investing in both SPDR DoubleLine and BSAE 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 BSAE 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 BSAE, you can compare the effects of market volatilities on SPDR DoubleLine and BSAE 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 BSAE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR DoubleLine and BSAE.

Diversification Opportunities for SPDR DoubleLine and BSAE

0.0

Correlation Coefficient

SPDR DoubleLine  BSAE

Pay attention - limited upside

The 3 months correlation between SPDR and BSAE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR DoubleLine Short and BSAE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BSAE 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 BSAE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BSAE has no effect on the direction of SPDR DoubleLine i.e., SPDR DoubleLine and BSAE go up and down completely randomly.

Pair Corralation between SPDR DoubleLine and BSAE

If you would invest (100.00) in BSAE on February 1, 2024 and sell it today you would earn a total of  100.00  from holding BSAE 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

SPDR DoubleLine Short  vs.  BSAE

SPDR DoubleLine Short

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR DoubleLine Short are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, SPDR DoubleLine is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

BSAE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BSAE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, BSAE is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SPDR DoubleLine and BSAE

The main advantage of trading using opposite SPDR DoubleLine and BSAE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR DoubleLine position performs unexpectedly, BSAE 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 BSAE will offset losses from the drop in BSAE's long position.

The idea behind SPDR DoubleLine Short and BSAE 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.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.