Correlation Between Doubleline Total and Doubleline Multi-asset
Can any of the company-specific risk be diversified away by investing in both Doubleline Total and Doubleline Multi-asset 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 Total and Doubleline Multi-asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubleline Total Return and Doubleline Multi Asset Trend, you can compare the effects of market volatilities on Doubleline Total and Doubleline Multi-asset 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 Total with a short position of Doubleline Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Total and Doubleline Multi-asset.
Diversification Opportunities for Doubleline Total and Doubleline Multi-asset
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Doubleline and Doubleline is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Total Return and Doubleline Multi Asset Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Multi Asset and Doubleline Total 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 Total Return are associated (or correlated) with Doubleline Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Multi Asset has no effect on the direction of Doubleline Total i.e., Doubleline Total and Doubleline Multi-asset go up and down completely randomly.
Pair Corralation between Doubleline Total and Doubleline Multi-asset
Assuming the 90 days horizon Doubleline Total Return is expected to generate 0.59 times more return on investment than Doubleline Multi-asset. However, Doubleline Total Return is 1.7 times less risky than Doubleline Multi-asset. It trades about -0.15 of its potential returns per unit of risk. Doubleline Multi Asset Trend is currently generating about -0.22 per unit of risk. If you would invest 899.00 in Doubleline Total Return on August 29, 2024 and sell it today you would lose (18.00) from holding Doubleline Total Return or give up 2.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.67% |
| Values | Daily Returns |
Doubleline Total Return vs. Doubleline Multi Asset Trend
Performance |
| Timeline |
| Doubleline Total Return |
| Doubleline Multi Asset |
Doubleline Total and Doubleline Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Total and Doubleline Multi-asset
The main advantage of trading using opposite Doubleline Total and Doubleline Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Total position performs unexpectedly, Doubleline Multi-asset 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 Multi-asset will offset losses from the drop in Doubleline Multi-asset's long position.| Doubleline Total vs. Hartford Moderate Allocation | Doubleline Total vs. Aqr Large Cap | Doubleline Total vs. Tax Managed Large Cap | Doubleline Total vs. Goldman Sachs Large |
| Doubleline Multi-asset vs. Doubleline Floating Rate | Doubleline Multi-asset vs. Doubleline Strategic Modity |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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