Correlation Between IREIT MarketVector and SPDR DoubleLine
Can any of the company-specific risk be diversified away by investing in both IREIT MarketVector and SPDR DoubleLine 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 IREIT MarketVector and SPDR DoubleLine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iREIT MarketVector and SPDR DoubleLine Short, you can compare the effects of market volatilities on IREIT MarketVector and SPDR DoubleLine 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 IREIT MarketVector with a short position of SPDR DoubleLine. Check out your portfolio center. Please also check ongoing floating volatility patterns of IREIT MarketVector and SPDR DoubleLine.
Diversification Opportunities for IREIT MarketVector and SPDR DoubleLine
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IREIT and SPDR is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding iREIT MarketVector and SPDR DoubleLine Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR DoubleLine Short and IREIT MarketVector 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 iREIT MarketVector are associated (or correlated) with SPDR DoubleLine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR DoubleLine Short has no effect on the direction of IREIT MarketVector i.e., IREIT MarketVector and SPDR DoubleLine go up and down completely randomly.
Pair Corralation between IREIT MarketVector and SPDR DoubleLine
Given the investment horizon of 90 days iREIT MarketVector is expected to generate 15.71 times more return on investment than SPDR DoubleLine. However, IREIT MarketVector is 15.71 times more volatile than SPDR DoubleLine Short. It trades about 0.12 of its potential returns per unit of risk. SPDR DoubleLine Short is currently generating about 0.4 per unit of risk. If you would invest 1,801 in iREIT MarketVector on May 26, 2025 and sell it today you would earn a total of 142.00 from holding iREIT MarketVector or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iREIT MarketVector vs. SPDR DoubleLine Short
Performance |
| Timeline |
| iREIT MarketVector |
| SPDR DoubleLine Short |
IREIT MarketVector and SPDR DoubleLine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IREIT MarketVector and SPDR DoubleLine
The main advantage of trading using opposite IREIT MarketVector and SPDR DoubleLine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IREIT MarketVector position performs unexpectedly, SPDR DoubleLine 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 DoubleLine will offset losses from the drop in SPDR DoubleLine's long position.| IREIT MarketVector vs. Vert Global Sustainable | IREIT MarketVector vs. First Trust Exchange Traded | IREIT MarketVector vs. VanEck Mortgage REIT | IREIT MarketVector vs. Vanguard Global ex US |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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