Correlation Between Angel Oak and Doubleline Income
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Doubleline Income 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 Angel Oak and Doubleline Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Ultrashort and Doubleline Income Solutions, you can compare the effects of market volatilities on Angel Oak and Doubleline Income 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 Angel Oak with a short position of Doubleline Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Doubleline Income.
Diversification Opportunities for Angel Oak and Doubleline Income
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Angel and Doubleline is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Doubleline Income Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Income and Angel Oak 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 Angel Oak Ultrashort are associated (or correlated) with Doubleline Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Income has no effect on the direction of Angel Oak i.e., Angel Oak and Doubleline Income go up and down completely randomly.
Pair Corralation between Angel Oak and Doubleline Income
Assuming the 90 days horizon Angel Oak is expected to generate 2.27 times less return on investment than Doubleline Income. But when comparing it to its historical volatility, Angel Oak Ultrashort is 6.33 times less risky than Doubleline Income. It trades about 0.15 of its potential returns per unit of risk. Doubleline Income Solutions is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,251 in Doubleline Income Solutions on August 31, 2024 and sell it today you would earn a total of 25.00 from holding Doubleline Income Solutions or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Ultrashort vs. Doubleline Income Solutions
Performance |
| Timeline |
| Angel Oak Ultrashort |
| Doubleline Income |
Angel Oak and Doubleline Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Doubleline Income
The main advantage of trading using opposite Angel Oak and Doubleline Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Doubleline Income 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 Doubleline Income will offset losses from the drop in Doubleline Income's long position.| Angel Oak vs. Virtus Convertible | Angel Oak vs. Advent Claymore Convertible | Angel Oak vs. Calamos Dynamic Convertible | Angel Oak vs. Putnam Convertible Incm Gwth |
| Doubleline Income vs. Highland Floating Rate | Doubleline Income vs. Pimco Dynamic Income | Doubleline Income vs. Doubleline Opportunistic Credit | Doubleline Income vs. Neuberger Berman Next |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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