Correlation Between Doubleline Core and Inflation Protection
Can any of the company-specific risk be diversified away by investing in both Doubleline Core and Inflation Protection 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 Doubleline Core and Inflation Protection into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubleline E Fixed and Inflation Protection Fund, you can compare the effects of market volatilities on Doubleline Core and Inflation Protection 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 Doubleline Core with a short position of Inflation Protection. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Core and Inflation Protection.
Diversification Opportunities for Doubleline Core and Inflation Protection
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Doubleline and Inflation is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline E Fixed and Inflation Protection Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflation Protection and Doubleline Core 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 Doubleline E Fixed are associated (or correlated) with Inflation Protection. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflation Protection has no effect on the direction of Doubleline Core i.e., Doubleline Core and Inflation Protection go up and down completely randomly.
Pair Corralation between Doubleline Core and Inflation Protection
Assuming the 90 days horizon Doubleline E Fixed is expected to generate 1.16 times more return on investment than Inflation Protection. However, Doubleline Core is 1.16 times more volatile than Inflation Protection Fund. It trades about 0.09 of its potential returns per unit of risk. Inflation Protection Fund is currently generating about 0.07 per unit of risk. If you would invest 896.00 in Doubleline E Fixed on September 3, 2024 and sell it today you would earn a total of 33.00 from holding Doubleline E Fixed or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline E Fixed vs. Inflation Protection Fund
Performance |
| Timeline |
| Doubleline E Fixed |
| Inflation Protection |
Doubleline Core and Inflation Protection Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Core and Inflation Protection
The main advantage of trading using opposite Doubleline Core and Inflation Protection positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Core position performs unexpectedly, Inflation Protection 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 Inflation Protection will offset losses from the drop in Inflation Protection's long position.| Doubleline Core vs. Sentinel Small Pany | Doubleline Core vs. Adams Diversified Equity | Doubleline Core vs. Lord Abbett Diversified | Doubleline Core vs. Principal Lifetime Hybrid |
| Inflation Protection vs. Virtus Real Estate | Inflation Protection vs. Prudential Real Estate | Inflation Protection vs. Pender Real Estate | Inflation Protection vs. Us Real Estate |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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