Correlation Between Barclays ETN and DoubleLine Opportunistic
Can any of the company-specific risk be diversified away by investing in both Barclays ETN and DoubleLine Opportunistic 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 Barclays ETN and DoubleLine Opportunistic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays ETN Shiller and DoubleLine Opportunistic Bond, you can compare the effects of market volatilities on Barclays ETN and DoubleLine Opportunistic 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 Barclays ETN with a short position of DoubleLine Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays ETN and DoubleLine Opportunistic.
Diversification Opportunities for Barclays ETN and DoubleLine Opportunistic
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barclays and DoubleLine is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Barclays ETN Shiller and DoubleLine Opportunistic Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DoubleLine Opportunistic and Barclays ETN 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 Barclays ETN Shiller are associated (or correlated) with DoubleLine Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DoubleLine Opportunistic has no effect on the direction of Barclays ETN i.e., Barclays ETN and DoubleLine Opportunistic go up and down completely randomly.
Pair Corralation between Barclays ETN and DoubleLine Opportunistic
Given the investment horizon of 90 days Barclays ETN Shiller is expected to under-perform the DoubleLine Opportunistic. In addition to that, Barclays ETN is 2.44 times more volatile than DoubleLine Opportunistic Bond. It trades about -0.04 of its total potential returns per unit of risk. DoubleLine Opportunistic Bond is currently generating about 0.09 per unit of volatility. If you would invest 4,518 in DoubleLine Opportunistic Bond on October 25, 2024 and sell it today you would earn a total of 20.00 from holding DoubleLine Opportunistic Bond or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Barclays ETN Shiller vs. DoubleLine Opportunistic Bond
Performance |
| Timeline |
| Barclays ETN Shiller |
| DoubleLine Opportunistic |
Barclays ETN and DoubleLine Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays ETN and DoubleLine Opportunistic
The main advantage of trading using opposite Barclays ETN and DoubleLine Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays ETN position performs unexpectedly, DoubleLine Opportunistic 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 Opportunistic will offset losses from the drop in DoubleLine Opportunistic's long position.| Barclays ETN vs. VanEck China Bond | Barclays ETN vs. Barclays ETN Select | Barclays ETN vs. SPDR SSGA Large | Barclays ETN vs. Freedom 100 Emerging |
| DoubleLine Opportunistic vs. Barclays ETN Shiller | DoubleLine Opportunistic vs. Janus Detroit Street | DoubleLine Opportunistic vs. VanEck ETF Trust | DoubleLine Opportunistic vs. Quadratic Deflation ETF |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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