Correlation Between Doubleline Core and State Street
Can any of the company-specific risk be diversified away by investing in both Doubleline Core and State Street 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 State Street 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 State Street Target, you can compare the effects of market volatilities on Doubleline Core and State Street 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 State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Core and State Street.
Diversification Opportunities for Doubleline Core and State Street
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Doubleline and State is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline E Fixed and State Street Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Target 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 State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Target has no effect on the direction of Doubleline Core i.e., Doubleline Core and State Street go up and down completely randomly.
Pair Corralation between Doubleline Core and State Street
Assuming the 90 days horizon Doubleline E Fixed is expected to generate 0.27 times more return on investment than State Street. However, Doubleline E Fixed is 3.66 times less risky than State Street. It trades about 0.05 of its potential returns per unit of risk. State Street Target is currently generating about -0.02 per unit of risk. If you would invest 918.00 in Doubleline E Fixed on November 27, 2024 and sell it today you would earn a total of 7.00 from holding Doubleline E Fixed or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline E Fixed vs. State Street Target
Performance |
| Timeline |
| Doubleline E Fixed |
| State Street Target |
Doubleline Core and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Core and State Street
The main advantage of trading using opposite Doubleline Core and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Core position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| Doubleline Core vs. Tiaa Cref Lifestyle Conservative | Doubleline Core vs. Global Diversified Income | Doubleline Core vs. Jhancock Diversified Macro | Doubleline Core vs. Diversified Bond Fund |
| State Street vs. Angel Oak Multi Strategy | State Street vs. Hartford Schroders Emerging | State Street vs. Investec Emerging Markets | State Street vs. Goldman Sachs Emerging |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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