Correlation Between Barings Active and Doubleline Total
Can any of the company-specific risk be diversified away by investing in both Barings Active and Doubleline Total 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 Barings Active and Doubleline Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Active Short and Doubleline Total Return, you can compare the effects of market volatilities on Barings Active and Doubleline Total 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 Barings Active with a short position of Doubleline Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Doubleline Total.
Diversification Opportunities for Barings Active and Doubleline Total
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Barings and Doubleline is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Doubleline Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Total Return and Barings Active 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 Barings Active Short are associated (or correlated) with Doubleline Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Total Return has no effect on the direction of Barings Active i.e., Barings Active and Doubleline Total go up and down completely randomly.
Pair Corralation between Barings Active and Doubleline Total
Assuming the 90 days horizon Barings Active is expected to generate 4.05 times less return on investment than Doubleline Total. But when comparing it to its historical volatility, Barings Active Short is 2.76 times less risky than Doubleline Total. It trades about 0.11 of its potential returns per unit of risk. Doubleline Total Return is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 874.00 in Doubleline Total Return on September 12, 2024 and sell it today you would earn a total of 8.00 from holding Doubleline Total Return or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Barings Active Short vs. Doubleline Total Return
Performance |
| Timeline |
| Barings Active Short |
| Doubleline Total Return |
Barings Active and Doubleline Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Doubleline Total
The main advantage of trading using opposite Barings Active and Doubleline Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active position performs unexpectedly, Doubleline Total 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 Total will offset losses from the drop in Doubleline Total's long position.| Barings Active vs. SCOR PK | Barings Active vs. Morningstar Unconstrained Allocation | Barings Active vs. Via Renewables | Barings Active vs. Bondbloxx ETF Trust |
| Doubleline Total vs. Astor Longshort Fund | Doubleline Total vs. Barings Active Short | Doubleline Total vs. Angel Oak Ultrashort | Doubleline Total vs. Blackrock Short Term Inflat Protected |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |