Correlation Between MFS Investment and Doubleline Income
Can any of the company-specific risk be diversified away by investing in both MFS Investment 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 MFS Investment and Doubleline Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFS Investment Grade and Doubleline Income Solutions, you can compare the effects of market volatilities on MFS Investment 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 MFS Investment with a short position of Doubleline Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and Doubleline Income.
Diversification Opportunities for MFS Investment and Doubleline Income
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MFS and Doubleline is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and Doubleline Income Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Income and MFS Investment 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 MFS Investment Grade 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 MFS Investment i.e., MFS Investment and Doubleline Income go up and down completely randomly.
Pair Corralation between MFS Investment and Doubleline Income
Considering the 90-day investment horizon MFS Investment is expected to generate 1.78 times less return on investment than Doubleline Income. But when comparing it to its historical volatility, MFS Investment Grade is 1.23 times less risky than Doubleline Income. It trades about 0.19 of its potential returns per unit of risk. Doubleline Income Solutions is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,221 in Doubleline Income Solutions on August 30, 2024 and sell it today you would earn a total of 55.00 from holding Doubleline Income Solutions or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFS Investment Grade vs. Doubleline Income Solutions
Performance |
| Timeline |
| MFS Investment Grade |
| Doubleline Income |
MFS Investment and Doubleline Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and Doubleline Income
The main advantage of trading using opposite MFS Investment and Doubleline Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment 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.| MFS Investment vs. Invesco High Income | MFS Investment vs. Eaton Vance National | MFS Investment vs. Nuveen California Select | MFS Investment vs. Federated Premier Municipal |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |