Correlation Between VanEck Oil and SPDR DoubleLine
Can any of the company-specific risk be diversified away by investing in both VanEck Oil 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 VanEck Oil and SPDR DoubleLine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Oil Services and SPDR DoubleLine Short, you can compare the effects of market volatilities on VanEck Oil 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 VanEck Oil with a short position of SPDR DoubleLine. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Oil and SPDR DoubleLine.
Diversification Opportunities for VanEck Oil and SPDR DoubleLine
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between VanEck and SPDR is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Oil Services 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 VanEck Oil 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 VanEck Oil Services 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 VanEck Oil i.e., VanEck Oil and SPDR DoubleLine go up and down completely randomly.
Pair Corralation between VanEck Oil and SPDR DoubleLine
Considering the 90-day investment horizon VanEck Oil Services is expected to generate 12.38 times more return on investment than SPDR DoubleLine. However, VanEck Oil is 12.38 times more volatile than SPDR DoubleLine Short. It trades about 0.13 of its potential returns per unit of risk. SPDR DoubleLine Short is currently generating about 0.13 per unit of risk. If you would invest 21,628 in VanEck Oil Services on April 25, 2025 and sell it today you would earn a total of 3,464 from holding VanEck Oil Services or generate 16.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Oil Services vs. SPDR DoubleLine Short
Performance |
| Timeline |
| VanEck Oil Services |
| SPDR DoubleLine Short |
VanEck Oil and SPDR DoubleLine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Oil and SPDR DoubleLine
The main advantage of trading using opposite VanEck Oil and SPDR DoubleLine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Oil 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.| VanEck Oil vs. SPDR SP Oil | VanEck Oil vs. Energy Select Sector | VanEck Oil vs. VanEck Semiconductor ETF | VanEck Oil vs. Materials Select Sector |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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