Correlation Between Barings Emerging and Doubleline Income
Can any of the company-specific risk be diversified away by investing in both Barings Emerging 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 Barings Emerging and Doubleline Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Emerging Markets and Doubleline Income Solutions, you can compare the effects of market volatilities on Barings Emerging 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 Barings Emerging with a short position of Doubleline Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Doubleline Income.
Diversification Opportunities for Barings Emerging and Doubleline Income
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Doubleline is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Doubleline Income Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Income and Barings Emerging 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 Emerging Markets 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 Barings Emerging i.e., Barings Emerging and Doubleline Income go up and down completely randomly.
Pair Corralation between Barings Emerging and Doubleline Income
Assuming the 90 days horizon Barings Emerging is expected to generate 3.15 times less return on investment than Doubleline Income. But when comparing it to its historical volatility, Barings Emerging Markets is 1.07 times less risky than Doubleline Income. It trades about 0.06 of its potential returns per unit of risk. Doubleline Income Solutions is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,255 in Doubleline Income Solutions on September 3, 2024 and sell it today you would earn a total of 16.00 from holding Doubleline Income Solutions or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Doubleline Income Solutions
Performance |
| Timeline |
| Barings Emerging Markets |
| Doubleline Income |
Barings Emerging and Doubleline Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Doubleline Income
The main advantage of trading using opposite Barings Emerging and Doubleline Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging 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.| Barings Emerging vs. Ab Small Cap | Barings Emerging vs. Ab Small Cap | Barings Emerging vs. Oklahoma College Savings | Barings Emerging vs. Champlain Small |
| Doubleline Income vs. Maryland Short Term Tax Free | Doubleline Income vs. Goldman Sachs Short | Doubleline Income vs. Aqr Long Short Equity | Doubleline Income vs. Calvert Short Duration |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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