Correlation Between Doubleline Global and 361 Global
Can any of the company-specific risk be diversified away by investing in both Doubleline Global and 361 Global 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 Global and 361 Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubleline Global Bond and 361 Global Longshort, you can compare the effects of market volatilities on Doubleline Global and 361 Global 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 Global with a short position of 361 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Global and 361 Global.
Diversification Opportunities for Doubleline Global and 361 Global
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Doubleline and 361 is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Global Bond and 361 Global Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 361 Global Longshort and Doubleline Global 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 Global Bond are associated (or correlated) with 361 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 361 Global Longshort has no effect on the direction of Doubleline Global i.e., Doubleline Global and 361 Global go up and down completely randomly.
Pair Corralation between Doubleline Global and 361 Global
Assuming the 90 days horizon Doubleline Global Bond is expected to under-perform the 361 Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Doubleline Global Bond is 1.45 times less risky than 361 Global. The mutual fund trades about -0.08 of its potential returns per unit of risk. The 361 Global Longshort is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,186 in 361 Global Longshort on November 3, 2024 and sell it today you would earn a total of 49.00 from holding 361 Global Longshort or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline Global Bond vs. 361 Global Longshort
Performance |
| Timeline |
| Doubleline Global Bond |
| 361 Global Longshort |
Doubleline Global and 361 Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Global and 361 Global
The main advantage of trading using opposite Doubleline Global and 361 Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Global position performs unexpectedly, 361 Global 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 361 Global will offset losses from the drop in 361 Global's long position.| Doubleline Global vs. Putnam Convertible Securities | Doubleline Global vs. Rationalpier 88 Convertible | Doubleline Global vs. Absolute Convertible Arbitrage | Doubleline Global vs. Virtus Convertible |
| 361 Global vs. Aqr Managed Futures | 361 Global vs. Neuberger Berman Long | 361 Global vs. Asg Managed Futures | 361 Global vs. Marketfield Fund Marketfield |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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