Correlation Between SPDR DoubleLine and SPDR MSCI
Can any of the company-specific risk be diversified away by investing in both SPDR DoubleLine and SPDR MSCI 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 SPDR MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR DoubleLine Emerging and SPDR MSCI Emerging, you can compare the effects of market volatilities on SPDR DoubleLine and SPDR MSCI 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 SPDR MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR DoubleLine and SPDR MSCI.
Diversification Opportunities for SPDR DoubleLine and SPDR MSCI
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and SPDR is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding SPDR DoubleLine Emerging and SPDR MSCI Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR MSCI Emerging 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 Emerging are associated (or correlated) with SPDR MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR MSCI Emerging has no effect on the direction of SPDR DoubleLine i.e., SPDR DoubleLine and SPDR MSCI go up and down completely randomly.
Pair Corralation between SPDR DoubleLine and SPDR MSCI
Given the investment horizon of 90 days SPDR DoubleLine is expected to generate 3.09 times less return on investment than SPDR MSCI. But when comparing it to its historical volatility, SPDR DoubleLine Emerging is 6.82 times less risky than SPDR MSCI. It trades about 0.53 of its potential returns per unit of risk. SPDR MSCI Emerging is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 3,848 in SPDR MSCI Emerging on June 12, 2025 and sell it today you would earn a total of 156.00 from holding SPDR MSCI Emerging or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
SPDR DoubleLine Emerging vs. SPDR MSCI Emerging
Performance |
| Timeline |
| SPDR DoubleLine Emerging |
| SPDR MSCI Emerging |
SPDR DoubleLine and SPDR MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR DoubleLine and SPDR MSCI
The main advantage of trading using opposite SPDR DoubleLine and SPDR MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR DoubleLine position performs unexpectedly, SPDR MSCI 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 MSCI will offset losses from the drop in SPDR MSCI's long position.| SPDR DoubleLine vs. Goldman Sachs ActiveBeta | SPDR DoubleLine vs. Goldman Sachs Access | SPDR DoubleLine vs. Goldman Sachs Access | SPDR DoubleLine vs. Goldman Sachs Access |
| SPDR MSCI vs. SPDR MSCI Emerging | SPDR MSCI vs. SPDR MSCI EAFE | SPDR MSCI vs. SPDR DoubleLine Emerging | SPDR MSCI vs. SPDR MSCI EAFE |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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