Correlation Between Bank of America and Doubleline Flexible
Can any of the company-specific risk be diversified away by investing in both Bank of America and Doubleline Flexible 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 Bank of America and Doubleline Flexible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of America and Doubleline Flexible Income, you can compare the effects of market volatilities on Bank of America and Doubleline Flexible 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 Bank of America with a short position of Doubleline Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Doubleline Flexible.
Diversification Opportunities for Bank of America and Doubleline Flexible
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Doubleline is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Doubleline Flexible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Flexible and Bank of America 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 Bank of America are associated (or correlated) with Doubleline Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Flexible has no effect on the direction of Bank of America i.e., Bank of America and Doubleline Flexible go up and down completely randomly.
Pair Corralation between Bank of America and Doubleline Flexible
Considering the 90-day investment horizon Bank of America is expected to generate 12.52 times more return on investment than Doubleline Flexible. However, Bank of America is 12.52 times more volatile than Doubleline Flexible Income. It trades about 0.06 of its potential returns per unit of risk. Doubleline Flexible Income is currently generating about 0.24 per unit of risk. If you would invest 3,115 in Bank of America on September 3, 2024 and sell it today you would earn a total of 1,636 from holding Bank of America or generate 52.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. Doubleline Flexible Income
Performance |
| Timeline |
| Bank of America |
| Doubleline Flexible |
Bank of America and Doubleline Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Doubleline Flexible
The main advantage of trading using opposite Bank of America and Doubleline Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Doubleline Flexible 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 Flexible will offset losses from the drop in Doubleline Flexible's long position.| Bank of America vs. Partner Communications | Bank of America vs. Merck Company | Bank of America vs. Western Midstream Partners | Bank of America vs. Edgewise Therapeutics |
| Doubleline Flexible vs. Dreyfusstandish Global Fixed | Doubleline Flexible vs. Scharf Global Opportunity | Doubleline Flexible vs. Dreyfusstandish Global Fixed | Doubleline Flexible vs. Mirova Global Green |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |