Correlation Between Doubleline Emerging and Doubleline Multi-asset
Can any of the company-specific risk be diversified away by investing in both Doubleline Emerging 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 Emerging 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 Emerging Markets and Doubleline Multi Asset Trend, you can compare the effects of market volatilities on Doubleline Emerging 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 Emerging with a short position of Doubleline Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Emerging and Doubleline Multi-asset.
Diversification Opportunities for Doubleline Emerging and Doubleline Multi-asset
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Doubleline and Doubleline is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Emerging Markets 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 Emerging 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 Emerging Markets 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 Emerging i.e., Doubleline Emerging and Doubleline Multi-asset go up and down completely randomly.
Pair Corralation between Doubleline Emerging and Doubleline Multi-asset
Assuming the 90 days horizon Doubleline Emerging Markets is expected to under-perform the Doubleline Multi-asset. But the mutual fund apears to be less risky and, when comparing its historical volatility, Doubleline Emerging Markets is 1.3 times less risky than Doubleline Multi-asset. The mutual fund trades about -0.34 of its potential returns per unit of risk. The Doubleline Multi Asset Trend is currently generating about -0.22 of returns per unit of risk over similar time horizon. If you would invest 769.00 in Doubleline Multi Asset Trend on August 29, 2024 and sell it today you would lose (37.00) from holding Doubleline Multi Asset Trend or give up 4.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline Emerging Markets vs. Doubleline Multi Asset Trend
Performance |
| Timeline |
| Doubleline Emerging |
| Doubleline Multi Asset |
Doubleline Emerging and Doubleline Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Emerging and Doubleline Multi-asset
The main advantage of trading using opposite Doubleline Emerging and Doubleline Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Emerging 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 Emerging vs. Small Cap Stock | Doubleline Emerging vs. Vanguard Strategic Small Cap | Doubleline Emerging vs. Wasatch Small Cap | Doubleline Emerging vs. Davenport Small Cap |
| Doubleline Multi-asset vs. Pimco Trends Managed | Doubleline Multi-asset vs. Pimco Trends Managed | Doubleline Multi-asset vs. HUMANA INC | Doubleline Multi-asset vs. Aquagold International |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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