Correlation Between DoubleLine Opportunistic and Barclays ETN
Can any of the company-specific risk be diversified away by investing in both DoubleLine Opportunistic and Barclays ETN 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 Opportunistic and Barclays ETN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DoubleLine Opportunistic Bond and Barclays ETN Shiller, you can compare the effects of market volatilities on DoubleLine Opportunistic and Barclays ETN 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 Opportunistic with a short position of Barclays ETN. Check out your portfolio center. Please also check ongoing floating volatility patterns of DoubleLine Opportunistic and Barclays ETN.
Diversification Opportunities for DoubleLine Opportunistic and Barclays ETN
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DoubleLine and Barclays is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding DoubleLine Opportunistic Bond and Barclays ETN Shiller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays ETN Shiller and DoubleLine Opportunistic 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 Opportunistic Bond are associated (or correlated) with Barclays ETN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays ETN Shiller has no effect on the direction of DoubleLine Opportunistic i.e., DoubleLine Opportunistic and Barclays ETN go up and down completely randomly.
Pair Corralation between DoubleLine Opportunistic and Barclays ETN
Given the investment horizon of 90 days DoubleLine Opportunistic is expected to generate 3.92 times less return on investment than Barclays ETN. But when comparing it to its historical volatility, DoubleLine Opportunistic Bond is 3.11 times less risky than Barclays ETN. It trades about 0.18 of its potential returns per unit of risk. Barclays ETN Shiller is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,999 in Barclays ETN Shiller on November 4, 2024 and sell it today you would earn a total of 104.00 from holding Barclays ETN Shiller or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DoubleLine Opportunistic Bond vs. Barclays ETN Shiller
Performance |
| Timeline |
| DoubleLine Opportunistic |
| Barclays ETN Shiller |
DoubleLine Opportunistic and Barclays ETN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DoubleLine Opportunistic and Barclays ETN
The main advantage of trading using opposite DoubleLine Opportunistic and Barclays ETN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DoubleLine Opportunistic position performs unexpectedly, Barclays ETN 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 Barclays ETN will offset losses from the drop in Barclays ETN's long position.| DoubleLine Opportunistic vs. Barclays ETN Shiller | DoubleLine Opportunistic vs. Janus Detroit Street | DoubleLine Opportunistic vs. VanEck ETF Trust | DoubleLine Opportunistic vs. Quadratic Deflation ETF |
| Barclays ETN vs. VanEck China Bond | Barclays ETN vs. Barclays ETN Select | Barclays ETN vs. SPDR SSGA Large | Barclays ETN vs. Freedom 100 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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