Correlation Between Doubleline Core and Doubleline Emerging
Can any of the company-specific risk be diversified away by investing in both Doubleline Core and Doubleline Emerging 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 Doubleline Emerging 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 Doubleline Emerging Markets, you can compare the effects of market volatilities on Doubleline Core and Doubleline Emerging 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 Doubleline Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Core and Doubleline Emerging.
Diversification Opportunities for Doubleline Core and Doubleline Emerging
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Doubleline and Doubleline is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline E Fixed and Doubleline Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Emerging 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 Doubleline Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Emerging has no effect on the direction of Doubleline Core i.e., Doubleline Core and Doubleline Emerging go up and down completely randomly.
Pair Corralation between Doubleline Core and Doubleline Emerging
Assuming the 90 days horizon Doubleline E Fixed is expected to generate 0.8 times more return on investment than Doubleline Emerging. However, Doubleline E Fixed is 1.26 times less risky than Doubleline Emerging. It trades about 0.08 of its potential returns per unit of risk. Doubleline Emerging Markets is currently generating about 0.01 per unit of risk. If you would invest 862.00 in Doubleline E Fixed on August 26, 2024 and sell it today you would earn a total of 58.00 from holding Doubleline E Fixed or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline E Fixed vs. Doubleline Emerging Markets
Performance |
| Timeline |
| Doubleline E Fixed |
| Doubleline Emerging |
Doubleline Core and Doubleline Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Core and Doubleline Emerging
The main advantage of trading using opposite Doubleline Core and Doubleline Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Core position performs unexpectedly, Doubleline Emerging 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 Emerging will offset losses from the drop in Doubleline Emerging's long position.| Doubleline Core vs. Doubleline Strategic Modity | Doubleline Core vs. Doubleline Emerging Markets | Doubleline Core vs. Doubleline Emerging Markets | Doubleline Core vs. Doubleline Floating Rate |
| Doubleline Emerging vs. Doubleline Strategic Modity | Doubleline Emerging vs. Doubleline Emerging Markets | Doubleline Emerging vs. Doubleline Shiller Enhanced | Doubleline Emerging vs. Doubleline Global Bond |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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